Correlation Between LendingClub Corp and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Thunder Bridge 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 Thunder Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Thunder Bridge Capital, you can compare the effects of market volatilities on LendingClub Corp and Thunder Bridge 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 Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Thunder Bridge.
Diversification Opportunities for LendingClub Corp and Thunder Bridge
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LendingClub and Thunder is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Thunder Bridge go up and down completely randomly.
Pair Corralation between LendingClub Corp and Thunder Bridge
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 2.56 times more return on investment than Thunder Bridge. However, LendingClub Corp is 2.56 times more volatile than Thunder Bridge Capital. It trades about 0.23 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.12 per unit of risk. If you would invest 1,415 in LendingClub Corp on August 30, 2024 and sell it today you would earn a total of 234.00 from holding LendingClub Corp or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
LendingClub Corp vs. Thunder Bridge Capital
Performance |
| Timeline |
| LendingClub Corp |
| Thunder Bridge Capital |
LendingClub Corp and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Thunder Bridge
The main advantage of trading using opposite LendingClub Corp and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.| LendingClub Corp vs. 360 Finance | LendingClub Corp vs. Atlanticus Holdings | LendingClub Corp vs. Qudian Inc | LendingClub Corp vs. Enova International |
| Thunder Bridge vs. Four Leaf Acquisition | Thunder Bridge vs. WinVest Acquisition Corp | Thunder Bridge vs. SK Growth Opportunities | Thunder Bridge vs. Pearl Holdings Acquisition |
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.
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