Correlation Between MoneyLion and Pegasystems
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Pegasystems 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 Pegasystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Pegasystems, you can compare the effects of market volatilities on MoneyLion and Pegasystems 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 Pegasystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Pegasystems.
Diversification Opportunities for MoneyLion and Pegasystems
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MoneyLion and Pegasystems is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Pegasystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasystems 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 Pegasystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasystems has no effect on the direction of MoneyLion i.e., MoneyLion and Pegasystems go up and down completely randomly.
Pair Corralation between MoneyLion and Pegasystems
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 2.61 times more return on investment than Pegasystems. However, MoneyLion is 2.61 times more volatile than Pegasystems. It trades about 0.07 of its potential returns per unit of risk. Pegasystems is currently generating about 0.09 per unit of risk. If you would invest 5,216 in MoneyLion on August 25, 2024 and sell it today you would earn a total of 3,502 from holding MoneyLion or generate 67.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. Pegasystems
Performance |
| Timeline |
| MoneyLion |
| Pegasystems |
MoneyLion and Pegasystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and Pegasystems
The main advantage of trading using opposite MoneyLion and Pegasystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Pegasystems 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 Pegasystems will offset losses from the drop in Pegasystems' long position.| MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
| Pegasystems vs. Wex Inc | Pegasystems vs. Cognex | Pegasystems vs. Progress Software | Pegasystems vs. Fair Isaac |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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