Correlation Between MoneyLion and SimilarWeb
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
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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyLion vs. SimilarWeb
Performance |
| Timeline |
| MoneyLion |
| SimilarWeb |
MoneyLion and SimilarWeb Volatility Contrast
Predicted Return Density |
| 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.| MoneyLion vs. Porch Group | ||
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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 CEOs Directory module to screen CEOs from public companies around the world.
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