Correlation Between FiscalNote Holdings and Aurora Innovation

Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings and Aurora Innovation 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 FiscalNote Holdings and Aurora Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FiscalNote Holdings and Aurora Innovation, you can compare the effects of market volatilities on FiscalNote Holdings and Aurora Innovation 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 FiscalNote Holdings with a short position of Aurora Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and Aurora Innovation.

Diversification Opportunities for FiscalNote Holdings and Aurora Innovation

0.35

Correlation Coefficient

FiscalNote Holdings  Aurora Innovation

Weak diversification

The 3 months correlation between FiscalNote and Aurora is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and Aurora Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Innovation and FiscalNote Holdings 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 FiscalNote Holdings are associated (or correlated) with Aurora Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Innovation has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and Aurora Innovation go up and down completely randomly.

Pair Corralation between FiscalNote Holdings and Aurora Innovation

Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the Aurora Innovation. In addition to that, FiscalNote Holdings is 2.28 times more volatile than Aurora Innovation. It trades about -0.08 of its total potential returns per unit of risk. Aurora Innovation is currently generating about 0.19 per unit of volatility. If you would invest  536.00  in Aurora Innovation on May 10, 2025 and sell it today you would earn a total of  80.00  from holding Aurora Innovation or generate 14.93% return on investment over 90 days.

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

FiscalNote Holdings  vs.  Aurora Innovation

FiscalNote Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days FiscalNote Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, FiscalNote Holdings is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Aurora Innovation

Risk-Adjusted Performance

Weakest

Over the last 90 days Aurora Innovation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with FiscalNote Holdings and Aurora Innovation

The main advantage of trading using opposite FiscalNote Holdings and Aurora Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings position performs unexpectedly, Aurora Innovation 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 Aurora Innovation will offset losses from the drop in Aurora Innovation's long position.

The idea behind FiscalNote Holdings and Aurora Innovation 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.