Correlation Between LendingClub Corp and Zhibao Technology
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Zhibao Technology 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 Zhibao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Zhibao Technology Class, you can compare the effects of market volatilities on LendingClub Corp and Zhibao Technology 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 Zhibao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Zhibao Technology.
Diversification Opportunities for LendingClub Corp and Zhibao Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LendingClub and Zhibao is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Zhibao Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhibao Technology Class 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 Zhibao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhibao Technology Class has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Zhibao Technology go up and down completely randomly.
Pair Corralation between LendingClub Corp and Zhibao Technology
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 1.04 times more return on investment than Zhibao Technology. However, LendingClub Corp is 1.04 times more volatile than Zhibao Technology Class. It trades about 0.3 of its potential returns per unit of risk. Zhibao Technology Class is currently generating about -0.26 per unit of risk. If you would invest 1,246 in LendingClub Corp on August 24, 2024 and sell it today you would earn a total of 344.00 from holding LendingClub Corp or generate 27.61% 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. Zhibao Technology Class
Performance |
| Timeline |
| LendingClub Corp |
| Zhibao Technology Class |
LendingClub Corp and Zhibao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Zhibao Technology
The main advantage of trading using opposite LendingClub Corp and Zhibao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Zhibao Technology 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 Zhibao Technology will offset losses from the drop in Zhibao Technology's long position.| LendingClub Corp vs. Navient Corp | LendingClub Corp vs. Green Dot | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash |
| Zhibao Technology vs. Kinetik Holdings | Zhibao Technology vs. Archrock | Zhibao Technology vs. Cardinal Health | Zhibao Technology vs. Tandem Diabetes Care |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |