Correlation Between MoneyLion and Movano
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Movano 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 Movano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Movano Inc, you can compare the effects of market volatilities on MoneyLion and Movano 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 Movano. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Movano.
Diversification Opportunities for MoneyLion and Movano
Excellent diversification
The 3 months correlation between MoneyLion and Movano is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Movano Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movano 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 Movano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movano Inc has no effect on the direction of MoneyLion i.e., MoneyLion and Movano go up and down completely randomly.
Pair Corralation between MoneyLion and Movano
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 1.18 times more return on investment than Movano. However, MoneyLion is 1.18 times more volatile than Movano Inc. It trades about 0.09 of its potential returns per unit of risk. Movano Inc is currently generating about -0.02 per unit of risk. If you would invest 1,500 in MoneyLion on August 31, 2024 and sell it today you would earn a total of 7,156 from holding MoneyLion or generate 477.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Movano Inc
Performance |
| Timeline |
| MoneyLion |
| Movano Inc |
MoneyLion and Movano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Movano
The main advantage of trading using opposite MoneyLion and Movano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Movano 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 Movano will offset losses from the drop in Movano'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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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