Correlation Between MoneyLion and CoreCard Corp

Can any of the company-specific risk be diversified away by investing in both MoneyLion and CoreCard Corp 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 CoreCard Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MoneyLion and CoreCard Corp, you can compare the effects of market volatilities on MoneyLion and CoreCard Corp 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 CoreCard Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and CoreCard Corp.

Diversification Opportunities for MoneyLion and CoreCard Corp

0.59

Correlation Coefficient

MoneyLion  CoreCard Corp

Very weak diversification

The 3 months correlation between MoneyLion and CoreCard is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and CoreCard Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreCard Corp 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 CoreCard Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreCard Corp has no effect on the direction of MoneyLion i.e., MoneyLion and CoreCard Corp go up and down completely randomly.

Pair Corralation between MoneyLion and CoreCard Corp

Allowing for the 90-day total investment horizon MoneyLion is expected to generate 1.96 times more return on investment than CoreCard Corp. However, MoneyLion is 1.96 times more volatile than CoreCard Corp. It trades about 0.08 of its potential returns per unit of risk. CoreCard Corp is currently generating about 0.0 per unit of risk. If you would invest  1,845  in MoneyLion on November 20, 2024 and sell it today you would earn a total of  6,881  from holding MoneyLion or generate 372.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

MoneyLion  vs.  CoreCard Corp

MoneyLion

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, MoneyLion disclosed solid returns over the last few months and may actually be approaching a breakup point.

CoreCard Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CoreCard Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, CoreCard Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MoneyLion and CoreCard Corp

The main advantage of trading using opposite MoneyLion and CoreCard Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, CoreCard Corp 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 CoreCard Corp will offset losses from the drop in CoreCard Corp's long position.

The idea behind MoneyLion and CoreCard Corp 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.