Correlation Between LendingClub Corp and MainStay CBRE
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and MainStay CBRE 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 MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and MainStay CBRE Global, you can compare the effects of market volatilities on LendingClub Corp and MainStay CBRE 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 MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and MainStay CBRE.
Diversification Opportunities for LendingClub Corp and MainStay CBRE
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LendingClub and MainStay is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and MainStay CBRE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MainStay CBRE Global 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 MainStay CBRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MainStay CBRE Global has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and MainStay CBRE go up and down completely randomly.
Pair Corralation between LendingClub Corp and MainStay CBRE
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 2.98 times more return on investment than MainStay CBRE. However, LendingClub Corp is 2.98 times more volatile than MainStay CBRE Global. It trades about 0.05 of its potential returns per unit of risk. MainStay CBRE Global is currently generating about 0.02 per unit of risk. If you would invest 947.00 in LendingClub Corp on October 20, 2024 and sell it today you would earn a total of 718.00 from holding LendingClub Corp or generate 75.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. MainStay CBRE Global
Performance |
| Timeline |
| LendingClub Corp |
| MainStay CBRE Global |
LendingClub Corp and MainStay CBRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and MainStay CBRE
The main advantage of trading using opposite LendingClub Corp and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, MainStay CBRE 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 MainStay CBRE will offset losses from the drop in MainStay CBRE's long position.| LendingClub Corp vs. Navient Corp | LendingClub Corp vs. Green Dot | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash |
| MainStay CBRE vs. Ares Dynamic Credit | MainStay CBRE vs. PGIM Short Duration | MainStay CBRE vs. Ecofin Sustainable And | MainStay CBRE vs. Aberdeen Total Dynamic |
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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