Correlation Between LendingClub Corp and BlackRock Virginia
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and BlackRock Virginia 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 Virginia 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 Virginia MBT, you can compare the effects of market volatilities on LendingClub Corp and BlackRock Virginia 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 Virginia. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and BlackRock Virginia.
Diversification Opportunities for LendingClub Corp and BlackRock Virginia
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LendingClub and BlackRock is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and BlackRock Virginia MBT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Virginia MBT 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 Virginia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Virginia MBT has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and BlackRock Virginia go up and down completely randomly.
Pair Corralation between LendingClub Corp and BlackRock Virginia
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 4.48 times more return on investment than BlackRock Virginia. However, LendingClub Corp is 4.48 times more volatile than BlackRock Virginia MBT. It trades about 0.13 of its potential returns per unit of risk. BlackRock Virginia MBT is currently generating about 0.07 per unit of risk. If you would invest 690.00 in LendingClub Corp on September 3, 2024 and sell it today you would earn a total of 974.00 from holding LendingClub Corp or generate 141.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.55% |
| Values | Daily Returns |
LendingClub Corp vs. BlackRock Virginia MBT
Performance |
| Timeline |
| LendingClub Corp |
| BlackRock Virginia MBT |
LendingClub Corp and BlackRock Virginia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and BlackRock Virginia
The main advantage of trading using opposite LendingClub Corp and BlackRock Virginia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, BlackRock Virginia 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 Virginia will offset losses from the drop in BlackRock Virginia's long position.| LendingClub Corp vs. Highway Holdings Limited | LendingClub Corp vs. QCR Holdings | LendingClub Corp vs. Partner Communications | LendingClub Corp vs. Acumen Pharmaceuticals |
| BlackRock Virginia vs. MFS Government Markets | BlackRock Virginia vs. Nuveen Variable Rate | BlackRock Virginia vs. Angel Oak Financial | BlackRock Virginia vs. Voya Emerging Markets |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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