Correlation Between LendingClub Corp and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Neuberger Berman 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 Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Neuberger Berman IMF, you can compare the effects of market volatilities on LendingClub Corp and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Neuberger Berman.
Diversification Opportunities for LendingClub Corp and Neuberger Berman
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LendingClub and Neuberger is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Neuberger Berman IMF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman IMF 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman IMF has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Neuberger Berman go up and down completely randomly.
Pair Corralation between LendingClub Corp and Neuberger Berman
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 5.26 times more return on investment than Neuberger Berman. However, LendingClub Corp is 5.26 times more volatile than Neuberger Berman IMF. It trades about 0.23 of its potential returns per unit of risk. Neuberger Berman IMF is currently generating about 0.0 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 | 95.45% |
| Values | Daily Returns |
LendingClub Corp vs. Neuberger Berman IMF
Performance |
| Timeline |
| LendingClub Corp |
| Neuberger Berman IMF |
LendingClub Corp and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Neuberger Berman
The main advantage of trading using opposite LendingClub Corp and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash | LendingClub Corp vs. Medallion Financial Corp | LendingClub Corp vs. Oportun Financial Corp |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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