Correlation Between LendingClub Corp and Cartesian Growth
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Cartesian Growth 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 Cartesian Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Cartesian Growth, you can compare the effects of market volatilities on LendingClub Corp and Cartesian Growth 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 Cartesian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Cartesian Growth.
Diversification Opportunities for LendingClub Corp and Cartesian Growth
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LendingClub and Cartesian is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth 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 Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Cartesian Growth go up and down completely randomly.
Pair Corralation between LendingClub Corp and Cartesian Growth
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 2.44 times more return on investment than Cartesian Growth. However, LendingClub Corp is 2.44 times more volatile than Cartesian Growth. It trades about 0.3 of its potential returns per unit of risk. Cartesian Growth is currently generating about -0.2 per unit of risk. If you would invest 1,359 in LendingClub Corp on August 26, 2024 and sell it today you would earn a total of 314.00 from holding LendingClub Corp or generate 23.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. Cartesian Growth
Performance |
| Timeline |
| LendingClub Corp |
| Cartesian Growth |
LendingClub Corp and Cartesian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Cartesian Growth
The main advantage of trading using opposite LendingClub Corp and Cartesian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Cartesian Growth 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 Cartesian Growth will offset losses from the drop in Cartesian Growth's long position.| LendingClub Corp vs. SLM Corp | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash | LendingClub Corp vs. Medallion Financial Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |