Correlation Between Thayer Ventures and MoneyLion

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

By analyzing existing cross correlation between Thayer Ventures Acquisition and MoneyLion, you can compare the effects of market volatilities on Thayer Ventures 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 Thayer Ventures with a short position of MoneyLion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thayer Ventures and MoneyLion.

Diversification Opportunities for Thayer Ventures and MoneyLion

-0.42

Correlation Coefficient

Thayer Ventures  MoneyLion

Very good diversification

The 3 months correlation between Thayer and MoneyLion is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and MoneyLion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyLion and Thayer Ventures 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 Thayer Ventures Acquisition 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 Thayer Ventures i.e., Thayer Ventures and MoneyLion go up and down completely randomly.

Pair Corralation between Thayer Ventures and MoneyLion

Assuming the 90 days horizon Thayer Ventures is expected to generate 4.26 times less return on investment than MoneyLion. In addition to that, Thayer Ventures is 2.69 times more volatile than MoneyLion. It trades about 0.02 of its total potential returns per unit of risk. MoneyLion is currently generating about 0.25 per unit of volatility. If you would invest  4,695  in MoneyLion on September 20, 2024 and sell it today you would earn a total of  3,930  from holding MoneyLion or generate 83.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Thayer Ventures Acquisition  vs.  MoneyLion

Thayer Ventures Acqu

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Thayer Ventures Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

MoneyLion

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal essential indicators, MoneyLion disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thayer Ventures and MoneyLion

The main advantage of trading using opposite Thayer Ventures and MoneyLion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thayer Ventures 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 Thayer Ventures Acquisition 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.