Correlation Between MoneyLion and Grindr

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

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

Diversification Opportunities for MoneyLion and Grindr

0.91

Correlation Coefficient

MoneyLion  Grindr

Almost no diversification

The 3 months correlation between MoneyLion and Grindr is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding MoneyLion and Grindr Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindr Inc 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 Grindr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindr Inc has no effect on the direction of MoneyLion i.e., MoneyLion and Grindr go up and down completely randomly.

Pair Corralation between MoneyLion and Grindr

Allowing for the 90-day total investment horizon MoneyLion is expected to generate 7.68 times less return on investment than Grindr. In addition to that, MoneyLion is 1.97 times more volatile than Grindr Inc. It trades about 0.02 of its total potential returns per unit of risk. Grindr Inc is currently generating about 0.32 per unit of volatility. If you would invest  1,520  in Grindr Inc on September 25, 2024 and sell it today you would earn a total of  252.00  from holding Grindr Inc or generate 16.58% return on investment over 90 days.

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

MoneyLion  vs.  Grindr Inc

MoneyLion

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, MoneyLion disclosed solid returns over the last few months and may actually be approaching a breakup point.

Grindr Inc

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Grindr Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Grindr exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MoneyLion and Grindr

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

The idea behind MoneyLion and Grindr Inc 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.