Correlation Between LendingTree and TIMBERCREEK FINL
Can any of the company-specific risk be diversified away by investing in both LendingTree and TIMBERCREEK FINL 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 LendingTree and TIMBERCREEK FINL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingTree and TIMBERCREEK FINL, you can compare the effects of market volatilities on LendingTree and TIMBERCREEK FINL 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 LendingTree with a short position of TIMBERCREEK FINL. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingTree and TIMBERCREEK FINL.
Diversification Opportunities for LendingTree and TIMBERCREEK FINL
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LendingTree and TIMBERCREEK is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding LendingTree and TIMBERCREEK FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMBERCREEK FINL and LendingTree 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 LendingTree are associated (or correlated) with TIMBERCREEK FINL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMBERCREEK FINL has no effect on the direction of LendingTree i.e., LendingTree and TIMBERCREEK FINL go up and down completely randomly.
Pair Corralation between LendingTree and TIMBERCREEK FINL
Assuming the 90 days horizon LendingTree is expected to under-perform the TIMBERCREEK FINL. In addition to that, LendingTree is 1.83 times more volatile than TIMBERCREEK FINL. It trades about -0.01 of its total potential returns per unit of risk. TIMBERCREEK FINL is currently generating about -0.01 per unit of volatility. If you would invest 487.00 in TIMBERCREEK FINL on November 2, 2024 and sell it today you would lose (21.00) from holding TIMBERCREEK FINL or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
LendingTree vs. TIMBERCREEK FINL
Performance |
| Timeline |
| LendingTree |
| TIMBERCREEK FINL |
LendingTree and TIMBERCREEK FINL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingTree and TIMBERCREEK FINL
The main advantage of trading using opposite LendingTree and TIMBERCREEK FINL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingTree position performs unexpectedly, TIMBERCREEK FINL 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 TIMBERCREEK FINL will offset losses from the drop in TIMBERCREEK FINL's long position.| LendingTree vs. MAGNUM MINING EXP | LendingTree vs. GEELY AUTOMOBILE | LendingTree vs. Carsales | LendingTree vs. Perseus Mining Limited |
| TIMBERCREEK FINL vs. Chengdu PUTIAN Telecommunications | TIMBERCREEK FINL vs. Singapore Telecommunications Limited | TIMBERCREEK FINL vs. GEELY AUTOMOBILE | TIMBERCREEK FINL vs. Q2M Managementberatung AG |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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