Correlation Between MoneyLion and Jfrog
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Jfrog 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 Jfrog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Jfrog, you can compare the effects of market volatilities on MoneyLion and Jfrog 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 Jfrog. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Jfrog.
Diversification Opportunities for MoneyLion and Jfrog
Poor diversification
The 3 months correlation between MoneyLion and Jfrog is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Jfrog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jfrog 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 Jfrog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jfrog has no effect on the direction of MoneyLion i.e., MoneyLion and Jfrog go up and down completely randomly.
Pair Corralation between MoneyLion and Jfrog
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 3.41 times more return on investment than Jfrog. However, MoneyLion is 3.41 times more volatile than Jfrog. It trades about 0.42 of its potential returns per unit of risk. Jfrog is currently generating about 0.07 per unit of risk. If you would invest 4,424 in MoneyLion on September 5, 2024 and sell it today you would earn a total of 4,164 from holding MoneyLion or generate 94.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Jfrog
Performance |
| Timeline |
| MoneyLion |
| Jfrog |
MoneyLion and Jfrog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Jfrog
The main advantage of trading using opposite MoneyLion and Jfrog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Jfrog 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 Jfrog will offset losses from the drop in Jfrog's long position.| MoneyLion vs. HeartCore Enterprises | MoneyLion vs. Beamr Imaging Ltd | MoneyLion vs. Trust Stamp | MoneyLion vs. CXApp 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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