Correlation Between Vimeo and MoneyLion

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

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

Diversification Opportunities for Vimeo and MoneyLion

0.89

Correlation Coefficient

Vimeo  MoneyLion

Very poor diversification

The 3 months correlation between Vimeo and MoneyLion is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vimeo Inc and MoneyLion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyLion and Vimeo 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 Vimeo Inc 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 Vimeo i.e., Vimeo and MoneyLion go up and down completely randomly.

Pair Corralation between Vimeo and MoneyLion

Given the investment horizon of 90 days Vimeo is expected to generate 2.76 times less return on investment than MoneyLion. In addition to that, Vimeo is 1.08 times more volatile than MoneyLion. It trades about 0.08 of its total potential returns per unit of risk. MoneyLion is currently generating about 0.24 per unit of volatility. If you would invest  4,290  in MoneyLion on September 2, 2024 and sell it today you would earn a total of  4,880  from holding MoneyLion or generate 113.75% return on investment over 90 days.

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

Vimeo Inc  vs.  MoneyLion

Vimeo Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vimeo Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Vimeo displayed solid returns over the last few months and may actually be approaching a breakup point.

MoneyLion

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyLion are ranked lower than 18 (%) 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.

Pair Trading with Vimeo and MoneyLion

The main advantage of trading using opposite Vimeo and MoneyLion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vimeo 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 Vimeo Inc 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.