Correlation Between LendingClub Corp and Marygold Companies
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Marygold Companies 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 Marygold Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Marygold Companies, you can compare the effects of market volatilities on LendingClub Corp and Marygold Companies 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 Marygold Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Marygold Companies.
Diversification Opportunities for LendingClub Corp and Marygold Companies
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LendingClub and Marygold is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Marygold Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marygold Companies 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 Marygold Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marygold Companies has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Marygold Companies go up and down completely randomly.
Pair Corralation between LendingClub Corp and Marygold Companies
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 1.61 times less return on investment than Marygold Companies. But when comparing it to its historical volatility, LendingClub Corp is 2.7 times less risky than Marygold Companies. It trades about 0.19 of its potential returns per unit of risk. Marygold Companies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 128.00 in Marygold Companies on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Marygold Companies or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. Marygold Companies
Performance |
| Timeline |
| LendingClub Corp |
| Marygold Companies |
LendingClub Corp and Marygold Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Marygold Companies
The main advantage of trading using opposite LendingClub Corp and Marygold Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Marygold Companies 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 Marygold Companies will offset losses from the drop in Marygold Companies' long position.| LendingClub Corp vs. Navient Corp | LendingClub Corp vs. Green Dot | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash |
| Marygold Companies vs. Oxford Lane Capital | Marygold Companies vs. XAI Octagon Floating | Marygold Companies vs. Cornerstone Strategic Return | Marygold Companies vs. Cornerstone Strategic Value |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |