Correlation Between Trust Stamp and MoneyLion
Can any of the company-specific risk be diversified away by investing in both Trust Stamp 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 Trust Stamp and MoneyLion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trust Stamp and MoneyLion, you can compare the effects of market volatilities on Trust Stamp 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 Trust Stamp with a short position of MoneyLion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trust Stamp and MoneyLion.
Diversification Opportunities for Trust Stamp and MoneyLion
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trust and MoneyLion is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp and MoneyLion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyLion and Trust Stamp 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 Trust Stamp 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 Trust Stamp i.e., Trust Stamp and MoneyLion go up and down completely randomly.
Pair Corralation between Trust Stamp and MoneyLion
Given the investment horizon of 90 days Trust Stamp is expected to generate 7.11 times more return on investment than MoneyLion. However, Trust Stamp is 7.11 times more volatile than MoneyLion. It trades about 0.22 of its potential returns per unit of risk. MoneyLion is currently generating about 0.03 per unit of risk. If you would invest 18.00 in Trust Stamp on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Trust Stamp or generate 127.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trust Stamp vs. MoneyLion
Performance |
| Timeline |
| Trust Stamp |
| MoneyLion |
Trust Stamp and MoneyLion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trust Stamp and MoneyLion
The main advantage of trading using opposite Trust Stamp and MoneyLion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp 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.| Trust Stamp vs. Dave Warrants | Trust Stamp vs. Swvl Holdings Corp | Trust Stamp vs. Guardforce AI Co | Trust Stamp vs. Thayer Ventures Acquisition |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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