Correlation Between LendingClub Corp and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and BurTech Acquisition 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 BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and BurTech Acquisition Corp, you can compare the effects of market volatilities on LendingClub Corp and BurTech Acquisition 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 BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and BurTech Acquisition.
Diversification Opportunities for LendingClub Corp and BurTech Acquisition
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LendingClub and BurTech is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition Corp 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 BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and BurTech Acquisition go up and down completely randomly.
Pair Corralation between LendingClub Corp and BurTech Acquisition
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 17.0 times more return on investment than BurTech Acquisition. However, LendingClub Corp is 17.0 times more volatile than BurTech Acquisition Corp. It trades about 0.22 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.2 per unit of risk. If you would invest 1,423 in LendingClub Corp on August 29, 2024 and sell it today you would earn a total of 226.00 from holding LendingClub Corp or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. BurTech Acquisition Corp
Performance |
| Timeline |
| LendingClub Corp |
| BurTech Acquisition Corp |
LendingClub Corp and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and BurTech Acquisition
The main advantage of trading using opposite LendingClub Corp and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, BurTech Acquisition 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition's long position.| LendingClub Corp vs. Visa Class A | LendingClub Corp vs. Mastercard | LendingClub Corp vs. Discover Financial Services |
| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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