Correlation Between MoneyLion and VTEX
Can any of the company-specific risk be diversified away by investing in both MoneyLion and VTEX 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 VTEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and VTEX, you can compare the effects of market volatilities on MoneyLion and VTEX 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 VTEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and VTEX.
Diversification Opportunities for MoneyLion and VTEX
Excellent diversification
The 3 months correlation between MoneyLion and VTEX is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and VTEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTEX 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 VTEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTEX has no effect on the direction of MoneyLion i.e., MoneyLion and VTEX go up and down completely randomly.
Pair Corralation between MoneyLion and VTEX
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 5.23 times more return on investment than VTEX. However, MoneyLion is 5.23 times more volatile than VTEX. It trades about 0.36 of its potential returns per unit of risk. VTEX is currently generating about -0.08 per unit of risk. If you would invest 4,518 in MoneyLion on August 24, 2024 and sell it today you would earn a total of 3,333 from holding MoneyLion or generate 73.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MoneyLion vs. VTEX
Performance |
| Timeline |
| MoneyLion |
| VTEX |
MoneyLion and VTEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyLion and VTEX
The main advantage of trading using opposite MoneyLion and VTEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, VTEX 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 VTEX will offset losses from the drop in VTEX'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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