Correlation Between Wipro Limited and FiscalNote Holdings

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

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

Diversification Opportunities for Wipro Limited and FiscalNote Holdings

0.53

Correlation Coefficient

Wipro Limited  FiscalNote Holdings

Very weak diversification

The 3 months correlation between Wipro and FiscalNote is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Wipro Limited ADR and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Wipro Limited 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 Wipro Limited ADR 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 Wipro Limited i.e., Wipro Limited and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between Wipro Limited and FiscalNote Holdings

Considering the 90-day investment horizon Wipro Limited ADR is expected to generate 0.3 times more return on investment than FiscalNote Holdings. However, Wipro Limited ADR is 3.36 times less risky than FiscalNote Holdings. It trades about 0.04 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.03 per unit of risk. If you would invest  234.00  in Wipro Limited ADR on March 26, 2025 and sell it today you would earn a total of  63.00  from holding Wipro Limited ADR or generate 26.92% return on investment over 90 days.

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

Wipro Limited ADR  vs.  FiscalNote Holdings

Wipro Limited ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wipro Limited ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Wipro Limited is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

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 Wipro Limited and FiscalNote Holdings

The main advantage of trading using opposite Wipro Limited and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wipro Limited 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 Wipro Limited ADR 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.