Correlation Between MoneyLion and SimilarWeb

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Can any of the company-specific risk be diversified away by investing in both MoneyLion and SimilarWeb 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 SimilarWeb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and SimilarWeb, you can compare the effects of market volatilities on MoneyLion and SimilarWeb 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 SimilarWeb. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and SimilarWeb.

Diversification Opportunities for MoneyLion and SimilarWeb

MoneyLionSimilarWebDiversified AwayMoneyLionSimilarWebDiversified Away100%
0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between MoneyLion and SimilarWeb is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and SimilarWeb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SimilarWeb 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 SimilarWeb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SimilarWeb has no effect on the direction of MoneyLion i.e., MoneyLion and SimilarWeb go up and down completely randomly.

Pair Corralation between MoneyLion and SimilarWeb

Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.49 times more return on investment than SimilarWeb. However, MoneyLion is 2.04 times less risky than SimilarWeb. It trades about 0.02 of its potential returns per unit of risk. SimilarWeb is currently generating about -0.07 per unit of risk. If you would invest  8,588  in MoneyLion on December 3, 2024 and sell it today you would earn a total of  112.00  from holding MoneyLion or generate 1.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MoneyLion  vs.  SimilarWeb

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20020406080100
JavaScript chart by amCharts 3.21.15ML SMWB
       Timeline  
MoneyLion 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, MoneyLion is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar7880828486889092
SimilarWeb 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SimilarWeb has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar91011121314151617

MoneyLion and SimilarWeb Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.24-6.17-4.1-2.030.02.054.126.28.28 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.15ML SMWB
       Returns  

Pair Trading with MoneyLion and SimilarWeb

The main advantage of trading using opposite MoneyLion and SimilarWeb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, SimilarWeb 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 SimilarWeb will offset losses from the drop in SimilarWeb's long position.
The idea behind MoneyLion and SimilarWeb pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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