Correlation Between Advanced Health and MoneyLion

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Can any of the company-specific risk be diversified away by investing in both Advanced Health and MoneyLion 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 Advanced Health and MoneyLion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Health Intelligence and MoneyLion, you can compare the effects of market volatilities on Advanced Health and MoneyLion 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 Advanced Health with a short position of MoneyLion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Health and MoneyLion.

Diversification Opportunities for Advanced Health and MoneyLion

-0.85
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Advanced and MoneyLion is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and MoneyLion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyLion and Advanced Health 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 Advanced Health Intelligence are associated (or correlated) with MoneyLion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyLion has no effect on the direction of Advanced Health i.e., Advanced Health and MoneyLion go up and down completely randomly.

Pair Corralation between Advanced Health and MoneyLion

Assuming the 90 days horizon Advanced Health Intelligence is expected to under-perform the MoneyLion. But the otc stock apears to be less risky and, when comparing its historical volatility, Advanced Health Intelligence is 1.44 times less risky than MoneyLion. The otc stock trades about -0.02 of its potential returns per unit of risk. The MoneyLion is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  7,125  in MoneyLion on October 2, 2024 and sell it today you would earn a total of  1,505  from holding MoneyLion or generate 21.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy99.2%
ValuesDaily Returns

Advanced Health Intelligence  vs.  MoneyLion

 Performance 
       Timeline  
Advanced Health Inte 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Advanced Health Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
MoneyLion 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, MoneyLion disclosed solid returns over the last few months and may actually be approaching a breakup point.

Advanced Health and MoneyLion Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Advanced Health and MoneyLion

The main advantage of trading using opposite Advanced Health and MoneyLion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Health position performs unexpectedly, MoneyLion 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 MoneyLion will offset losses from the drop in MoneyLion's long position.
The idea behind Advanced Health Intelligence and MoneyLion 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.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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