Correlation Between MoneyLion and Innovativ Media

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

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

Diversification Opportunities for MoneyLion and Innovativ Media

-0.67

Correlation Coefficient

MoneyLion  Innovativ Media

Excellent diversification

The 3 months correlation between MoneyLion and Innovativ is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Innovativ Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovativ Media 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 Innovativ Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovativ Media Group has no effect on the direction of MoneyLion i.e., MoneyLion and Innovativ Media go up and down completely randomly.

Pair Corralation between MoneyLion and Innovativ Media

If you would invest  1,789  in MoneyLion on January 25, 2024 and sell it today you would earn a total of  5,226  from holding MoneyLion or generate 292.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.81%
Values	Daily Returns

MoneyLion  vs.  Innovativ Media Group

MoneyLion

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, MoneyLion disclosed solid returns over the last few months and may actually be approaching a breakup point.

Innovativ Media Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Innovativ Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Innovativ Media is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MoneyLion and Innovativ Media

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

The idea behind MoneyLion and Innovativ Media 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.