Correlation Between LendingClub Corp and Elevate Credit
Can any of the company-specific risk be diversified away by investing in both LendingClub Corp and Elevate Credit 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 Elevate Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LendingClub Corp and Elevate Credit, you can compare the effects of market volatilities on LendingClub Corp and Elevate Credit 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 Elevate Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of LendingClub Corp and Elevate Credit.
Diversification Opportunities for LendingClub Corp and Elevate Credit
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LendingClub and Elevate is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Elevate Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevate Credit 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 Elevate Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevate Credit has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Elevate Credit go up and down completely randomly.
Pair Corralation between LendingClub Corp and Elevate Credit
If you would invest 187.00 in Elevate Credit on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Elevate Credit or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
LendingClub Corp vs. Elevate Credit
Performance |
| Timeline |
| LendingClub Corp |
| Elevate Credit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LendingClub Corp and Elevate Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LendingClub Corp and Elevate Credit
The main advantage of trading using opposite LendingClub Corp and Elevate Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LendingClub Corp position performs unexpectedly, Elevate Credit 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 Elevate Credit will offset losses from the drop in Elevate Credit's long position.| LendingClub Corp vs. Mersana Therapeutics | LendingClub Corp vs. Amtech Systems | LendingClub Corp vs. First United |
| Elevate Credit vs. Merit Medical Systems | Elevate Credit vs. Calliditas Therapeutics | Elevate Credit vs. Compania Cervecerias Unidas | Elevate Credit vs. RadNet Inc |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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