Correlation Between Open Lending and Clear Secure
Can any of the company-specific risk be diversified away by investing in both Open Lending and Clear Secure 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 Open Lending and Clear Secure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Open Lending Corp and Clear Secure, you can compare the effects of market volatilities on Open Lending and Clear Secure 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 Open Lending with a short position of Clear Secure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Open Lending and Clear Secure.
Diversification Opportunities for Open Lending and Clear Secure
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Open and Clear is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Open Lending Corp and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and Open Lending 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 Open Lending Corp are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of Open Lending i.e., Open Lending and Clear Secure go up and down completely randomly.
Pair Corralation between Open Lending and Clear Secure
Given the investment horizon of 90 days Open Lending Corp is expected to generate 0.68 times more return on investment than Clear Secure. However, Open Lending Corp is 1.46 times less risky than Clear Secure. It trades about 0.2 of its potential returns per unit of risk. Clear Secure is currently generating about -0.18 per unit of risk. If you would invest 551.00 in Open Lending Corp on August 28, 2024 and sell it today you would earn a total of 97.00 from holding Open Lending Corp or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Open Lending Corp vs. Clear Secure
Performance |
| Timeline |
| Open Lending Corp |
| Clear Secure |
Open Lending and Clear Secure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Open Lending and Clear Secure
The main advantage of trading using opposite Open Lending and Clear Secure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Open Lending position performs unexpectedly, Clear Secure 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 Clear Secure will offset losses from the drop in Clear Secure's long position.| Open Lending vs. EZCORP Inc | Open Lending vs. Orix Corp Ads | Open Lending vs. SLM Corp | Open Lending vs. Navient 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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