Correlation Between MoneyLion and Cyngn
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Cyngn 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 Cyngn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Cyngn Inc, you can compare the effects of market volatilities on MoneyLion and Cyngn 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 Cyngn. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Cyngn.
Diversification Opportunities for MoneyLion and Cyngn
Almost no diversification
The 3 months correlation between MoneyLion and Cyngn is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Cyngn Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyngn Inc 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 Cyngn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyngn Inc has no effect on the direction of MoneyLion i.e., MoneyLion and Cyngn go up and down completely randomly.
Pair Corralation between MoneyLion and Cyngn
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.77 times more return on investment than Cyngn. However, MoneyLion is 1.29 times less risky than Cyngn. It trades about 0.23 of its potential returns per unit of risk. Cyngn Inc is currently generating about 0.15 per unit of risk. If you would invest 4,290 in MoneyLion on August 31, 2024 and sell it today you would earn a total of 4,366 from holding MoneyLion or generate 101.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Cyngn Inc
Performance |
| Timeline |
| MoneyLion |
| Cyngn Inc |
MoneyLion and Cyngn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Cyngn
The main advantage of trading using opposite MoneyLion and Cyngn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Cyngn 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 Cyngn will offset losses from the drop in Cyngn's long position.| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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