Correlation Between LendingClub Corp and Pintec Technology

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

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

Diversification Opportunities for LendingClub Corp and Pintec Technology

-0.31

Correlation Coefficient

LendingClub Corp  Pintec Technology

Very good diversification

The 3 months correlation between LendingClub and Pintec is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding LendingClub Corp and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology 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 Pintec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pintec Technology has no effect on the direction of LendingClub Corp i.e., LendingClub Corp and Pintec Technology go up and down completely randomly.

Pair Corralation between LendingClub Corp and Pintec Technology

Allowing for the 90-day total investment horizon LendingClub Corp is expected to under-perform the Pintec Technology. In addition to that, LendingClub Corp is 1.76 times more volatile than Pintec Technology Holdings. It trades about -0.26 of its total potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.06 per unit of volatility. If you would invest  95.00  in Pintec Technology Holdings on January 6, 2025 and sell it today you would earn a total of  6.00  from holding Pintec Technology Holdings or generate 6.32% return on investment over 90 days.

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

LendingClub Corp  vs.  Pintec Technology Holdings

LendingClub Corp

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pintec Technology

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pintec Technology Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Pintec Technology may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with LendingClub Corp and Pintec Technology

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

The idea behind LendingClub Corp and Pintec Technology Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.