Correlation Between LendingClub Corp and Nuveen Select
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Nuveen Select 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 Nuveen Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Nuveen Select Tax Free, you can compare the effects of market volatilities on LendingClub Corp and Nuveen Select 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 Nuveen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Nuveen Select.
Diversification Opportunities for LendingClub Corp and Nuveen Select
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LendingClub and Nuveen is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Nuveen Select Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Select Tax 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 Nuveen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Select Tax has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Nuveen Select go up and down completely randomly.
Pair Corralation between LendingClub Corp and Nuveen Select
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 4.19 times more return on investment than Nuveen Select. However, LendingClub Corp is 4.19 times more volatile than Nuveen Select Tax Free. It trades about 0.05 of its potential returns per unit of risk. Nuveen Select Tax Free is currently generating about 0.05 per unit of risk. If you would invest 988.00 in LendingClub Corp on August 24, 2024 and sell it today you would earn a total of 685.00 from holding LendingClub Corp or generate 69.33% 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. Nuveen Select Tax Free
Performance |
| Timeline |
| LendingClub Corp |
| Nuveen Select Tax |
LendingClub Corp and Nuveen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Nuveen Select
The main advantage of trading using opposite LendingClub Corp and Nuveen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Nuveen Select 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 Nuveen Select will offset losses from the drop in Nuveen Select's long position.| LendingClub Corp vs. Navient Corp | LendingClub Corp vs. Green Dot | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash |
| Nuveen Select vs. Nuveen Dividend Advantage | Nuveen Select vs. Nuveen Amt Free Municipal | Nuveen Select vs. Nuveen Municipal Credit | Nuveen Select vs. Nuveen Amt Free |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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