Correlation Between MoneyLion and Hitek Global
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Hitek Global 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 Hitek Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Hitek Global Ordinary, you can compare the effects of market volatilities on MoneyLion and Hitek Global 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 Hitek Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Hitek Global.
Diversification Opportunities for MoneyLion and Hitek Global
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MoneyLion and Hitek is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Hitek Global Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitek Global Ordinary 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 Hitek Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitek Global Ordinary has no effect on the direction of MoneyLion i.e., MoneyLion and Hitek Global go up and down completely randomly.
Pair Corralation between MoneyLion and Hitek Global
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.4 times more return on investment than Hitek Global. However, MoneyLion is 2.51 times less risky than Hitek Global. It trades about 0.11 of its potential returns per unit of risk. Hitek Global Ordinary is currently generating about 0.03 per unit of risk. If you would invest 2,229 in MoneyLion on September 4, 2024 and sell it today you would earn a total of 6,455 from holding MoneyLion or generate 289.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Hitek Global Ordinary
Performance |
| Timeline |
| MoneyLion |
| Hitek Global Ordinary |
MoneyLion and Hitek Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Hitek Global
The main advantage of trading using opposite MoneyLion and Hitek Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Hitek Global 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 Hitek Global will offset losses from the drop in Hitek Global's long position.| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Clearwater Analytics Holdings | Hitek Global vs. Expensify |
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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