Correlation Between FiscalNote Holdings and NextTrip

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

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

Diversification Opportunities for FiscalNote Holdings and NextTrip

0.5

Correlation Coefficient

FiscalNote Holdings  NextTrip

Very weak diversification

The 3 months correlation between FiscalNote and NextTrip is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and NextTrip in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextTrip 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 NextTrip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextTrip has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and NextTrip go up and down completely randomly.

Pair Corralation between FiscalNote Holdings and NextTrip

Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the NextTrip. But the stock apears to be less risky and, when comparing its historical volatility, FiscalNote Holdings is 1.25 times less risky than NextTrip. The stock trades about -0.01 of its potential returns per unit of risk. The NextTrip is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  303.00  in NextTrip on July 23, 2025 and sell it today you would earn a total of  15.00  from holding NextTrip or generate 4.95% return on investment over 90 days.

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

FiscalNote Holdings  vs.  NextTrip

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 unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

NextTrip

Risk-Adjusted Performance

Weakest

Over the last 90 days NextTrip has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 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 NextTrip

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

The idea behind FiscalNote Holdings and NextTrip 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.