Correlation Between MoneyLion and PTC

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

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

Diversification Opportunities for MoneyLion and PTC

-0.31

Correlation Coefficient

MoneyLion  PTC

Very good diversification

The 3 months correlation between MoneyLion and PTC is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and PTC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTC Inc 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 PTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTC Inc has no effect on the direction of MoneyLion i.e., MoneyLion and PTC go up and down completely randomly.

Pair Corralation between MoneyLion and PTC

Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.31 times more return on investment than PTC. However, MoneyLion is 3.18 times less risky than PTC. It trades about 0.03 of its potential returns per unit of risk. PTC Inc is currently generating about -0.13 per unit of risk. If you would invest  8,658  in MoneyLion on December 27, 2024 and sell it today you would earn a total of  77.00  from holding MoneyLion or generate 0.89% return on investment over 90 days.

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

MoneyLion  vs.  PTC Inc

MoneyLion

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, MoneyLion is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

PTC Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with MoneyLion and PTC

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

The idea behind MoneyLion and PTC Inc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.