Correlation Between MoneyLion and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Nano Dimension 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 Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Nano Dimension, you can compare the effects of market volatilities on MoneyLion and Nano Dimension 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 Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Nano Dimension.
Diversification Opportunities for MoneyLion and Nano Dimension
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MoneyLion and Nano is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension 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 Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of MoneyLion i.e., MoneyLion and Nano Dimension go up and down completely randomly.
Pair Corralation between MoneyLion and Nano Dimension
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 2.87 times more return on investment than Nano Dimension. However, MoneyLion is 2.87 times more volatile than Nano Dimension. It trades about 0.42 of its potential returns per unit of risk. Nano Dimension is currently generating about -0.07 per unit of risk. If you would invest 4,611 in MoneyLion on August 28, 2024 and sell it today you would earn a total of 4,054 from holding MoneyLion or generate 87.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Nano Dimension
Performance |
| Timeline |
| MoneyLion |
| Nano Dimension |
MoneyLion and Nano Dimension Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Nano Dimension
The main advantage of trading using opposite MoneyLion and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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