Correlation Between MoneyLion and DoubleVerify Holdings
Can any of the company-specific risk be diversified away by investing in both MoneyLion and DoubleVerify Holdings 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 DoubleVerify Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and DoubleVerify Holdings, you can compare the effects of market volatilities on MoneyLion and DoubleVerify Holdings 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 DoubleVerify Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and DoubleVerify Holdings.
Diversification Opportunities for MoneyLion and DoubleVerify Holdings
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MoneyLion and DoubleVerify is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and DoubleVerify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleVerify Holdings 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 DoubleVerify Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleVerify Holdings has no effect on the direction of MoneyLion i.e., MoneyLion and DoubleVerify Holdings go up and down completely randomly.
Pair Corralation between MoneyLion and DoubleVerify Holdings
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 7.65 times less return on investment than DoubleVerify Holdings. But when comparing it to its historical volatility, MoneyLion is 2.95 times less risky than DoubleVerify Holdings. It trades about 0.08 of its potential returns per unit of risk. DoubleVerify Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,926 in DoubleVerify Holdings on November 3, 2024 and sell it today you would earn a total of 135.00 from holding DoubleVerify Holdings or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. DoubleVerify Holdings
Performance |
| Timeline |
| MoneyLion |
| DoubleVerify Holdings |
MoneyLion and DoubleVerify Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and DoubleVerify Holdings
The main advantage of trading using opposite MoneyLion and DoubleVerify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, DoubleVerify Holdings 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 DoubleVerify Holdings will offset losses from the drop in DoubleVerify Holdings' long position.| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
| DoubleVerify Holdings vs. Blackline | DoubleVerify Holdings vs. Manhattan Associates | DoubleVerify Holdings vs. Aspen Technology | DoubleVerify Holdings vs. ANSYS Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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