Correlation Between MoneyLion and Baijiayun

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

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

Diversification Opportunities for MoneyLion and Baijiayun

-0.28

Correlation Coefficient

MoneyLion  Baijiayun

Very good diversification

The 3 months correlation between MoneyLion and Baijiayun is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Baijiayun Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baijiayun 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 Baijiayun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baijiayun Group has no effect on the direction of MoneyLion i.e., MoneyLion and Baijiayun go up and down completely randomly.

Pair Corralation between MoneyLion and Baijiayun

Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.3 times more return on investment than Baijiayun. However, MoneyLion is 3.29 times less risky than Baijiayun. It trades about -0.03 of its potential returns per unit of risk. Baijiayun Group is currently generating about -0.52 per unit of risk. If you would invest  9,170  in MoneyLion on November 29, 2024 and sell it today you would lose (574.00) from holding MoneyLion or give up 6.26% of portfolio value over 90 days.

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

MoneyLion  vs.  Baijiayun Group

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.

Baijiayun Group

Risk-Adjusted Performance

Very Weak

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

Pair Trading with MoneyLion and Baijiayun

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

The idea behind MoneyLion and Baijiayun 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.