Correlation Between MoneyLion and Bm Technologies
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Bm Technologies 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 Bm Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Bm Technologies, you can compare the effects of market volatilities on MoneyLion and Bm Technologies 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 Bm Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Bm Technologies.
Diversification Opportunities for MoneyLion and Bm Technologies
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MoneyLion and BMTX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Bm Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bm Technologies 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 Bm Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bm Technologies has no effect on the direction of MoneyLion i.e., MoneyLion and Bm Technologies go up and down completely randomly.
Pair Corralation between MoneyLion and Bm Technologies
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.85 times more return on investment than Bm Technologies. However, MoneyLion is 1.18 times less risky than Bm Technologies. It trades about 0.3 of its potential returns per unit of risk. Bm Technologies is currently generating about 0.14 per unit of risk. If you would invest 4,155 in MoneyLion on August 29, 2024 and sell it today you would earn a total of 4,509 from holding MoneyLion or generate 108.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Bm Technologies
Performance |
| Timeline |
| MoneyLion |
| Bm Technologies |
MoneyLion and Bm Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Bm Technologies
The main advantage of trading using opposite MoneyLion and Bm Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Bm Technologies 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 Bm Technologies will offset losses from the drop in Bm Technologies' long position.| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
| Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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