Correlation Between Aquagold International and LendingClub Corp
Can any of the company-specific risk be diversified away by investing in both Aquagold International and LendingClub Corp 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 Aquagold International and LendingClub Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and LendingClub Corp, you can compare the effects of market volatilities on Aquagold International and LendingClub Corp 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 Aquagold International with a short position of LendingClub Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and LendingClub Corp.
Diversification Opportunities for Aquagold International and LendingClub Corp
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aquagold and LendingClub is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and LendingClub Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LendingClub Corp and Aquagold International 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 Aquagold International are associated (or correlated) with LendingClub Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LendingClub Corp has no effect on the direction of Aquagold International i.e., Aquagold International and LendingClub Corp go up and down completely randomly.
Pair Corralation between Aquagold International and LendingClub Corp
Given the investment horizon of 90 days Aquagold International is expected to generate 15.46 times more return on investment than LendingClub Corp. However, Aquagold International is 15.46 times more volatile than LendingClub Corp. It trades about 0.06 of its potential returns per unit of risk. LendingClub Corp is currently generating about -0.01 per unit of risk. If you would invest 16.00 in Aquagold International on February 10, 2024 and sell it today you would lose (15.40) from holding Aquagold International or give up 96.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.78% |
Values | Daily Returns |
Aquagold International vs. LendingClub Corp
Performance |
Timeline |
Aquagold International |
LendingClub Corp |
Aquagold International and LendingClub Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aquagold International and LendingClub Corp
The main advantage of trading using opposite Aquagold International and LendingClub Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, LendingClub Corp 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 LendingClub Corp will offset losses from the drop in LendingClub Corp's long position.Aquagold International vs. National Beverage Corp | Aquagold International vs. Celsius Holdings | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Coca Cola Femsa SAB |
LendingClub Corp vs. Visa Class A | LendingClub Corp vs. PayPal Holdings | LendingClub Corp vs. Mastercard |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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