Correlation Between LendingClub Corp and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Goldman Sachs 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 Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Goldman Sachs BDC, you can compare the effects of market volatilities on LendingClub Corp and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Goldman Sachs.
Diversification Opportunities for LendingClub Corp and Goldman Sachs
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LendingClub and Goldman is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Goldman Sachs BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs BDC 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs BDC has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Goldman Sachs go up and down completely randomly.
Pair Corralation between LendingClub Corp and Goldman Sachs
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 2.8 times more return on investment than Goldman Sachs. However, LendingClub Corp is 2.8 times more volatile than Goldman Sachs BDC. It trades about 0.23 of its potential returns per unit of risk. Goldman Sachs BDC is currently generating about -0.13 per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. Goldman Sachs BDC
Performance |
| Timeline |
| LendingClub Corp |
| Goldman Sachs BDC |
LendingClub Corp and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Goldman Sachs
The main advantage of trading using opposite LendingClub Corp and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' 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 |
| Goldman Sachs vs. Carlyle Secured Lending | Goldman Sachs vs. Sixth Street Specialty | Goldman Sachs vs. Golub Capital BDC | Goldman Sachs vs. Fidus Investment 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 CEOs Directory module to screen CEOs from public companies around the world.
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