Correlation Between MoneyLion and Digital Turbine
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Digital Turbine 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 MoneyLion and Digital Turbine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Digital Turbine, you can compare the effects of market volatilities on MoneyLion and Digital Turbine 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 MoneyLion with a short position of Digital Turbine. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Digital Turbine.
Diversification Opportunities for MoneyLion and Digital Turbine
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MoneyLion and Digital is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Digital Turbine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Turbine and MoneyLion 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 MoneyLion are associated (or correlated) with Digital Turbine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Turbine has no effect on the direction of MoneyLion i.e., MoneyLion and Digital Turbine go up and down completely randomly.
Pair Corralation between MoneyLion and Digital Turbine
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.76 times more return on investment than Digital Turbine. However, MoneyLion is 1.32 times less risky than Digital Turbine. It trades about 0.08 of its potential returns per unit of risk. Digital Turbine is currently generating about -0.01 per unit of risk. If you would invest 5,004 in MoneyLion on August 27, 2024 and sell it today you would earn a total of 3,714 from holding MoneyLion or generate 74.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Digital Turbine
Performance |
| Timeline |
| MoneyLion |
| Digital Turbine |
MoneyLion and Digital Turbine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Digital Turbine
The main advantage of trading using opposite MoneyLion and Digital Turbine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Digital Turbine 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 Digital Turbine will offset losses from the drop in Digital Turbine's long position.| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
| Digital Turbine vs. Autodesk | Digital Turbine vs. Intuit Inc | Digital Turbine vs. Zoom Video Communications | Digital Turbine vs. Snowflake |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |