Correlation Between MoneyLion and Clear Secure

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

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

Diversification Opportunities for MoneyLion and Clear Secure

0.07

Correlation Coefficient

MoneyLion  Clear Secure

Significant diversification

The 3 months correlation between MoneyLion and Clear is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure 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 Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of MoneyLion i.e., MoneyLion and Clear Secure go up and down completely randomly.

Pair Corralation between MoneyLion and Clear Secure

If you would invest  8,630  in MoneyLion on December 28, 2024 and sell it today you would earn a total of  106.00  from holding MoneyLion or generate 1.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

MoneyLion  vs.  Clear Secure

MoneyLion

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 3 (%) 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.

Clear Secure

Risk-Adjusted Performance

Weak

Over the last 90 days Clear Secure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Clear Secure is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MoneyLion and Clear Secure

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

The idea behind MoneyLion and Clear Secure 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.