Correlation Between LendingClub Corp and Bukit Jalil
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Bukit Jalil 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 Bukit Jalil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Bukit Jalil Global, you can compare the effects of market volatilities on LendingClub Corp and Bukit Jalil 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 Bukit Jalil. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Bukit Jalil.
Diversification Opportunities for LendingClub Corp and Bukit Jalil
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LendingClub and Bukit is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global 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 Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Bukit Jalil go up and down completely randomly.
Pair Corralation between LendingClub Corp and Bukit Jalil
Allowing for the 90-day total investment horizon LendingClub Corp is expected to generate 20.34 times less return on investment than Bukit Jalil. But when comparing it to its historical volatility, LendingClub Corp is 12.01 times less risky than Bukit Jalil. It trades about 0.07 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5.53 in Bukit Jalil Global on October 5, 2024 and sell it today you would lose (1.93) from holding Bukit Jalil Global or give up 34.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 29.23% |
Values | Daily Returns |
LendingClub Corp vs. Bukit Jalil Global
Performance |
Timeline |
LendingClub Corp |
Bukit Jalil Global |
LendingClub Corp and Bukit Jalil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LendingClub Corp and Bukit Jalil
The main advantage of trading using opposite LendingClub Corp and Bukit Jalil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Bukit Jalil 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 Bukit Jalil will offset losses from the drop in Bukit Jalil's long position.LendingClub Corp vs. Navient Corp | LendingClub Corp vs. Green Dot | LendingClub Corp vs. Orix Corp Ads | LendingClub Corp vs. FirstCash |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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