Correlation Between MoneyLion and Vertex
Can any of the company-specific risk be diversified away by investing in both MoneyLion and Vertex 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 Vertex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyLion and Vertex, you can compare the effects of market volatilities on MoneyLion and Vertex 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 Vertex. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyLion and Vertex.
Diversification Opportunities for MoneyLion and Vertex
Significant diversification
The 3 months correlation between MoneyLion and Vertex is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Vertex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vertex 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 Vertex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vertex has no effect on the direction of MoneyLion i.e., MoneyLion and Vertex go up and down completely randomly.
Pair Corralation between MoneyLion and Vertex
Allowing for the 90-day total investment horizon MoneyLion is expected to generate 0.74 times more return on investment than Vertex. However, MoneyLion is 1.35 times less risky than Vertex. It trades about 0.01 of its potential returns per unit of risk. Vertex is currently generating about -0.24 per unit of risk. If you would invest 8,684 in MoneyLion on December 1, 2024 and sell it today you would earn a total of 28.00 from holding MoneyLion or generate 0.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MoneyLion vs. Vertex
Performance |
Timeline |
MoneyLion |
Vertex |
MoneyLion and Vertex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MoneyLion and Vertex
The main advantage of trading using opposite MoneyLion and Vertex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyLion position performs unexpectedly, Vertex 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 Vertex will offset losses from the drop in Vertex's long position.MoneyLion vs. Porch Group | MoneyLion vs. Nerdy Inc | MoneyLion vs. Wag Group Co | MoneyLion vs. Dave Warrants |
Vertex vs. Expensify | Vertex vs. Clearwater Analytics Holdings | Vertex vs. Sprinklr | Vertex vs. Alkami Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |