Correlation Between Next Technology and FiscalNote Holdings

Can any of the company-specific risk be diversified away by investing in both Next 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 Next 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 Next Technology Holding and FiscalNote Holdings, you can compare the effects of market volatilities on Next 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 Next Technology with a short position of FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Technology and FiscalNote Holdings.

Diversification Opportunities for Next Technology and FiscalNote Holdings

0.93

Correlation Coefficient

Next Technology  FiscalNote Holdings

Almost no diversification

The 3 months correlation between Next and FiscalNote is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Next Technology Holding and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Next 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 Next Technology Holding 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 Next Technology i.e., Next Technology and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between Next Technology and FiscalNote Holdings

Given the investment horizon of 90 days Next Technology Holding is expected to generate 6.82 times more return on investment than FiscalNote Holdings. However, Next Technology is 6.82 times more volatile than FiscalNote Holdings. It trades about 0.05 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.02 per unit of risk. If you would invest  19,900  in Next Technology Holding on July 31, 2025 and sell it today you would lose (17,670) from holding Next Technology Holding or give up 88.79% of portfolio value over 90 days.

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

Next Technology Holding  vs.  FiscalNote Holdings

Next Technology Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Next Technology Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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.

Pair Trading with Next Technology and FiscalNote Holdings

The main advantage of trading using opposite Next Technology and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next 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 Next Technology Holding 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 Global Correlations module to find global opportunities by holding instruments from different markets.