Correlation Between LendingClub Corp and Oak Woods
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Oak Woods 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 Oak Woods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Oak Woods Acquisition, you can compare the effects of market volatilities on LendingClub Corp and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Oak Woods.
Diversification Opportunities for LendingClub Corp and Oak Woods
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LendingClub and Oak is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Oak Woods go up and down completely randomly.
Pair Corralation between LendingClub Corp and Oak Woods
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 1.34 times less return on investment than Oak Woods. But when comparing it to its historical volatility, LendingClub Corp is 3.63 times less risky than Oak Woods. It trades about 0.18 of its potential returns per unit of risk. Oak Woods Acquisition is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Oak Woods Acquisition on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Oak Woods Acquisition or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
LendingClub Corp vs. Oak Woods Acquisition
Performance |
| Timeline |
| LendingClub Corp |
| Oak Woods Acquisition |
LendingClub Corp and Oak Woods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Oak Woods
The main advantage of trading using opposite LendingClub Corp and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.| LendingClub Corp vs. Navient Corp | LendingClub Corp vs. Green Dot | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash |
| Oak Woods vs. Visa Class A | Oak Woods vs. Diamond Hill Investment | Oak Woods vs. Distoken Acquisition | Oak Woods vs. AllianceBernstein Holding LP |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |