Correlation Between Orix Corp and LendingClub Corp
Can any of the company-specific risk be diversified away by investing in both Orix Corp and LendingClub Corp 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 Orix Corp and LendingClub Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orix Corp Ads and LendingClub Corp, you can compare the effects of market volatilities on Orix Corp and LendingClub Corp 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 Orix Corp with a short position of LendingClub Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orix Corp and LendingClub Corp.
Diversification Opportunities for Orix Corp and LendingClub Corp
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Orix and LendingClub is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Orix Corp Ads and LendingClub Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LendingClub Corp and Orix Corp 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 Orix Corp Ads are associated (or correlated) with LendingClub Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LendingClub Corp has no effect on the direction of Orix Corp i.e., Orix Corp and LendingClub Corp go up and down completely randomly.
Pair Corralation between Orix Corp and LendingClub Corp
Allowing for the 90-day total investment horizon Orix Corp is expected to generate 5.14 times less return on investment than LendingClub Corp. But when comparing it to its historical volatility, Orix Corp Ads is 2.42 times less risky than LendingClub Corp. It trades about 0.11 of its potential returns per unit of risk. LendingClub Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,423 in LendingClub Corp on August 28, 2024 and sell it today you would earn a total of 235.00 from holding LendingClub Corp or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orix Corp Ads vs. LendingClub Corp
Performance |
| Timeline |
| Orix Corp Ads |
| LendingClub Corp |
Orix Corp and LendingClub Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orix Corp and LendingClub Corp
The main advantage of trading using opposite Orix Corp and LendingClub Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orix Corp position performs unexpectedly, LendingClub Corp 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 LendingClub Corp will offset losses from the drop in LendingClub Corp's long position.| Orix Corp vs. Atlanticus Holdings Corp | Orix Corp vs. Nelnet Inc | Orix Corp vs. EZCORP Inc | Orix Corp vs. SLM Corp |
| LendingClub Corp vs. SLM Corp | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash | LendingClub Corp vs. Medallion Financial Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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