Correlation Between Eventbrite and MoneyLion

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

Diversification Opportunities for Eventbrite and MoneyLion

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Eventbrite and MoneyLion is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Eventbrite Class A and MoneyLion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyLion and Eventbrite 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 Eventbrite Class A 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 Eventbrite i.e., Eventbrite and MoneyLion go up and down completely randomly.

Pair Corralation between Eventbrite and MoneyLion

Allowing for the 90-day total investment horizon Eventbrite Class A is expected to under-perform the MoneyLion. But the stock apears to be less risky and, when comparing its historical volatility, Eventbrite Class A is 1.22 times less risky than MoneyLion. The stock trades about -0.21 of its potential returns per unit of risk. The MoneyLion is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  5,216  in MoneyLion on December 29, 2023 and sell it today you would earn a total of  2,010  from holding MoneyLion or generate 38.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Eventbrite Class A  vs.  MoneyLion

 Performance 
       Timeline  
Eventbrite Class A 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Eventbrite Class A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
MoneyLion 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, MoneyLion disclosed solid returns over the last few months and may actually be approaching a breakup point.

Eventbrite and MoneyLion Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eventbrite and MoneyLion

The main advantage of trading using opposite Eventbrite and MoneyLion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventbrite 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 Eventbrite Class A 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.
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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