Correlation Between Hitek Global and MoneyLion
Can any of the company-specific risk be diversified away by investing in both Hitek Global and MoneyLion 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 Hitek Global and MoneyLion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitek Global Ordinary and MoneyLion, you can compare the effects of market volatilities on Hitek Global and MoneyLion 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 Hitek Global with a short position of MoneyLion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and MoneyLion.
Diversification Opportunities for Hitek Global and MoneyLion
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hitek and MoneyLion is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and MoneyLion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyLion and Hitek Global 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 Hitek Global Ordinary are associated (or correlated) with MoneyLion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyLion has no effect on the direction of Hitek Global i.e., Hitek Global and MoneyLion go up and down completely randomly.
Pair Corralation between Hitek Global and MoneyLion
Given the investment horizon of 90 days Hitek Global Ordinary is expected to under-perform the MoneyLion. In addition to that, Hitek Global is 10.44 times more volatile than MoneyLion. It trades about -0.06 of its total potential returns per unit of risk. MoneyLion is currently generating about -0.02 per unit of volatility. If you would invest 8,732 in MoneyLion on December 1, 2024 and sell it today you would lose (20.00) from holding MoneyLion or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hitek Global Ordinary vs. MoneyLion
Performance |
| Timeline |
| Hitek Global Ordinary |
| MoneyLion |
Hitek Global and MoneyLion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitek Global and MoneyLion
The main advantage of trading using opposite Hitek Global and MoneyLion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitek Global position performs unexpectedly, MoneyLion 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 MoneyLion will offset losses from the drop in MoneyLion's long position.| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Clearwater Analytics Holdings | Hitek Global vs. Expensify |
| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
Check out your portfolio center.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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