Correlation Between LendingClub Corp and BlackRock California
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and BlackRock California 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 LendingClub Corp and BlackRock California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and BlackRock California Municipal, you can compare the effects of market volatilities on LendingClub Corp and BlackRock California 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 LendingClub Corp with a short position of BlackRock California. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and BlackRock California.
Diversification Opportunities for LendingClub Corp and BlackRock California
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LendingClub and BlackRock is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and BlackRock California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock California and LendingClub 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 LendingClub Corp are associated (or correlated) with BlackRock California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock California has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and BlackRock California go up and down completely randomly.
Pair Corralation between LendingClub Corp and BlackRock California
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 6.51 times more return on investment than BlackRock California. However, LendingClub Corp is 6.51 times more volatile than BlackRock California Municipal. It trades about 0.11 of its potential returns per unit of risk. BlackRock California Municipal is currently generating about 0.02 per unit of risk. If you would invest 902.00 in LendingClub Corp on August 28, 2024 and sell it today you would earn a total of 756.00 from holding LendingClub Corp or generate 83.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. BlackRock California Municipal
Performance |
| Timeline |
| LendingClub Corp |
| BlackRock California |
LendingClub Corp and BlackRock California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and BlackRock California
The main advantage of trading using opposite LendingClub Corp and BlackRock California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, BlackRock California 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 BlackRock California will offset losses from the drop in BlackRock California's long position.| LendingClub Corp vs. SLM Corp | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash | LendingClub Corp vs. Medallion Financial Corp |
| BlackRock California vs. Blackrock Muniyield Quality | BlackRock California vs. Blackrock Muni Intermediate | BlackRock California vs. Nuveen California Amt | BlackRock California vs. Munivest Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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