Correlation Between LendingClub Corp and Value Line
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Value Line 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 Value Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Value Line, you can compare the effects of market volatilities on LendingClub Corp and Value Line 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 Value Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Value Line.
Diversification Opportunities for LendingClub Corp and Value Line
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LendingClub and Value is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Value Line in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line 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 Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Value Line go up and down completely randomly.
Pair Corralation between LendingClub Corp and Value Line
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 0.97 times more return on investment than Value Line. However, LendingClub Corp is 1.03 times less risky than Value Line. It trades about 0.05 of its potential returns per unit of risk. Value Line is currently generating about 0.02 per unit of risk. If you would invest 939.00 in LendingClub Corp on August 30, 2024 and sell it today you would earn a total of 710.00 from holding LendingClub Corp or generate 75.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LendingClub Corp vs. Value Line
Performance |
| Timeline |
| LendingClub Corp |
| Value Line |
LendingClub Corp and Value Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Value Line
The main advantage of trading using opposite LendingClub Corp and Value Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Value Line 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 Value Line will offset losses from the drop in Value Line's long position.| LendingClub Corp vs. 360 Finance | LendingClub Corp vs. Atlanticus Holdings | LendingClub Corp vs. X Financial Class | LendingClub Corp vs. Yirendai |
| Value Line vs. Dun Bradstreet Holdings | Value Line vs. FactSet Research Systems | Value Line vs. Moodys | Value Line vs. MSCI Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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