Correlation Between LZ Technology and FiscalNote Holdings

Can any of the company-specific risk be diversified away by investing in both LZ Technology and FiscalNote Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining LZ Technology and FiscalNote Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LZ Technology Holdings and FiscalNote Holdings, you can compare the effects of market volatilities on LZ Technology and FiscalNote Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in LZ Technology with a short position of FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of LZ Technology and FiscalNote Holdings.

Diversification Opportunities for LZ Technology and FiscalNote Holdings

-0.42

Correlation Coefficient

LZ Technology  FiscalNote Holdings

Very good diversification

The 3 months correlation between LZMH and FiscalNote is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding LZ Technology Holdings and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and LZ Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on LZ Technology Holdings are associated (or correlated) with FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of LZ Technology i.e., LZ Technology and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between LZ Technology and FiscalNote Holdings

Given the investment horizon of 90 days LZ Technology Holdings is expected to generate 2.46 times more return on investment than FiscalNote Holdings. However, LZ Technology is 2.46 times more volatile than FiscalNote Holdings. It trades about 0.16 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.14 per unit of risk. If you would invest  691.00  in LZ Technology Holdings on March 30, 2025 and sell it today you would earn a total of  874.00  from holding LZ Technology Holdings or generate 126.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

LZ Technology Holdings  vs.  FiscalNote Holdings

LZ Technology Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LZ Technology Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile primary indicators, LZ Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

FiscalNote Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days FiscalNote Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in July 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with LZ Technology and FiscalNote Holdings

The main advantage of trading using opposite LZ Technology and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LZ Technology position performs unexpectedly, FiscalNote Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FiscalNote Holdings will offset losses from the drop in FiscalNote Holdings' long position.

The idea behind LZ Technology Holdings and FiscalNote Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.