Correlation Between MoneyLion and Triller

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

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

Diversification Opportunities for MoneyLion and Triller

-0.56

Correlation Coefficient

MoneyLion  Triller

Excellent diversification

The 3 months correlation between MoneyLion and Triller is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Triller Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triller Group 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 Triller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triller Group has no effect on the direction of MoneyLion i.e., MoneyLion and Triller go up and down completely randomly.

Pair Corralation between MoneyLion and Triller

Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.42 times more return on investment than Triller. However, MoneyLion is 2.4 times less risky than Triller. It trades about 0.1 of its potential returns per unit of risk. Triller Group is currently generating about -0.09 per unit of risk. If you would invest  8,024  in MoneyLion on September 22, 2024 and sell it today you would earn a total of  651.00  from holding MoneyLion or generate 8.11% return on investment over 90 days.

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

MoneyLion  vs.  Triller Group

MoneyLion

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal essential indicators, MoneyLion disclosed solid returns over the last few months and may actually be approaching a breakup point.

Triller Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Triller Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Triller showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MoneyLion and Triller

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

The idea behind MoneyLion and Triller Group 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.