Correlation Between Clear Secure and Open Lending
Can any of the company-specific risk be diversified away by investing in both Clear Secure and Open Lending 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 Clear Secure and Open Lending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Secure and Open Lending Corp, you can compare the effects of market volatilities on Clear Secure and Open Lending 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 Clear Secure with a short position of Open Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Secure and Open Lending.
Diversification Opportunities for Clear Secure and Open Lending
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clear and Open is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and Open Lending Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Lending Corp and Clear Secure 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 Clear Secure are associated (or correlated) with Open Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Lending Corp has no effect on the direction of Clear Secure i.e., Clear Secure and Open Lending go up and down completely randomly.
Pair Corralation between Clear Secure and Open Lending
Considering the 90-day investment horizon Clear Secure is expected to under-perform the Open Lending. In addition to that, Clear Secure is 1.41 times more volatile than Open Lending Corp. It trades about -0.19 of its total potential returns per unit of risk. Open Lending Corp is currently generating about 0.16 per unit of volatility. If you would invest 547.00 in Open Lending Corp on August 24, 2024 and sell it today you would earn a total of 76.00 from holding Open Lending Corp or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Clear Secure vs. Open Lending Corp
Performance |
| Timeline |
| Clear Secure |
| Open Lending Corp |
Clear Secure and Open Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Secure and Open Lending
The main advantage of trading using opposite Clear Secure and Open Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Secure position performs unexpectedly, Open Lending 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 Open Lending will offset losses from the drop in Open Lending's long position.| Clear Secure vs. Braze Inc | Clear Secure vs. Enfusion | Clear Secure vs. Freshworks | Clear Secure vs. Clearwater Analytics Holdings |
| 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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