Correlation Between LendingClub Corp and BlackRock Investment

Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and BlackRock Investment 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 BlackRock Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LendingClub Corp and BlackRock Investment Quality, you can compare the effects of market volatilities on LendingClub Corp and BlackRock Investment 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 BlackRock Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and BlackRock Investment.

Diversification Opportunities for LendingClub Corp and BlackRock Investment

0.0

Correlation Coefficient

LendingClub Corp  BlackRock Investment

Pay attention - limited upside

The 3 months correlation between LendingClub and BlackRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and BlackRock Investment Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Investment 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 BlackRock Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Investment has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and BlackRock Investment go up and down completely randomly.

Pair Corralation between LendingClub Corp and BlackRock Investment

If you would invest  0.00  in BlackRock Investment Quality on October 1, 2024 and sell it today you would earn a total of  0.00  from holding BlackRock Investment Quality or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

LendingClub Corp  vs.  BlackRock Investment Quality

LendingClub Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LendingClub Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, LendingClub Corp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

BlackRock Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlackRock Investment Quality has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking signals, BlackRock Investment is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with LendingClub Corp and BlackRock Investment

The main advantage of trading using opposite LendingClub Corp and BlackRock Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, BlackRock Investment 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 BlackRock Investment will offset losses from the drop in BlackRock Investment's long position.

The idea behind LendingClub Corp and BlackRock Investment Quality pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.