Correlation Between LendingClub Corp and BlackRock MIT
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and BlackRock MIT 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 MIT 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 MIT II, you can compare the effects of market volatilities on LendingClub Corp and BlackRock MIT 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 MIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and BlackRock MIT.
Diversification Opportunities for LendingClub Corp and BlackRock MIT
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LendingClub and BlackRock is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and BlackRock MIT II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock MIT II 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 MIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock MIT II has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and BlackRock MIT go up and down completely randomly.
Pair Corralation between LendingClub Corp and BlackRock MIT
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 5.44 times more return on investment than BlackRock MIT. However, LendingClub Corp is 5.44 times more volatile than BlackRock MIT II. It trades about 0.06 of its potential returns per unit of risk. BlackRock MIT II is currently generating about 0.06 per unit of risk. If you would invest 964.00 in LendingClub Corp on August 28, 2024 and sell it today you would earn a total of 694.00 from holding LendingClub Corp or generate 71.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. BlackRock MIT II
Performance |
| Timeline |
| LendingClub Corp |
| BlackRock MIT II |
LendingClub Corp and BlackRock MIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and BlackRock MIT
The main advantage of trading using opposite LendingClub Corp and BlackRock MIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, BlackRock MIT 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 MIT will offset losses from the drop in BlackRock MIT's long position.| LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. Medallion Financial Corp | LendingClub Corp vs. Oportun Financial Corp | LendingClub Corp vs. SLM Corp Pb |
| BlackRock MIT vs. Blackrock Munivest | BlackRock MIT vs. Invesco Municipal Trust | BlackRock MIT vs. BlackRock Municipal Income | BlackRock MIT vs. Eaton Vance Mbf |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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