Correlation Between MoneyLion and EzFill Holdings

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

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

Diversification Opportunities for MoneyLion and EzFill Holdings

0.06

Correlation Coefficient

MoneyLion  EzFill Holdings

Significant diversification

The 3 months correlation between MoneyLion and EzFill is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and EzFill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EzFill Holdings 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 EzFill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EzFill Holdings has no effect on the direction of MoneyLion i.e., MoneyLion and EzFill Holdings go up and down completely randomly.

Pair Corralation between MoneyLion and EzFill Holdings

Allowing for the 90-day total investment horizon MoneyLion is expected to under-perform the EzFill Holdings. But the stock apears to be less risky and, when comparing its historical volatility, MoneyLion is 3.19 times less risky than EzFill Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The EzFill Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  248.00  in EzFill Holdings on November 28, 2024 and sell it today you would earn a total of  102.00  from holding EzFill Holdings or generate 41.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	89.66%
Values	Daily Returns

MoneyLion  vs.  EzFill Holdings

MoneyLion

Risk-Adjusted Performance

Very Weak

Over the last 90 days MoneyLion has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

EzFill Holdings

Risk-Adjusted Performance

OK

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite conflicting technical and fundamental indicators, EzFill Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MoneyLion and EzFill Holdings

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

The idea behind MoneyLion and EzFill Holdings 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.