Correlation Between LendingClub Corp and Melar Acquisition
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Melar 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 Melar 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 Melar Acquisition Corp, you can compare the effects of market volatilities on LendingClub Corp and Melar 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 Melar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Melar Acquisition.
Diversification Opportunities for LendingClub Corp and Melar Acquisition
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LendingClub and Melar is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Melar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melar 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 Melar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melar Acquisition Corp has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Melar Acquisition go up and down completely randomly.
Pair Corralation between LendingClub Corp and Melar Acquisition
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 20.77 times more return on investment than Melar Acquisition. However, LendingClub Corp is 20.77 times more volatile than Melar Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. Melar Acquisition Corp is currently generating about 0.05 per unit of risk. If you would invest 945.00 in LendingClub Corp on September 3, 2024 and sell it today you would earn a total of 719.00 from holding LendingClub Corp or generate 76.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 19.6% |
| Values | Daily Returns |
LendingClub Corp vs. Melar Acquisition Corp
Performance |
| Timeline |
| LendingClub Corp |
| Melar Acquisition Corp |
LendingClub Corp and Melar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Melar Acquisition
The main advantage of trading using opposite LendingClub Corp and Melar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Melar 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 Melar Acquisition will offset losses from the drop in Melar Acquisition's long position.| LendingClub Corp vs. Highway Holdings Limited | LendingClub Corp vs. QCR Holdings | LendingClub Corp vs. Partner Communications | LendingClub Corp vs. Acumen Pharmaceuticals |
| Melar Acquisition vs. Alpha One | Melar Acquisition vs. Manaris Corp | Melar Acquisition vs. SCOR PK | Melar Acquisition vs. Aquagold International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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