Correlation Between Nerdwallet and Lexinfintech Holdings
Can any of the company-specific risk be diversified away by investing in both Nerdwallet and Lexinfintech Holdings 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 Nerdwallet and Lexinfintech Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nerdwallet and Lexinfintech Holdings, you can compare the effects of market volatilities on Nerdwallet and Lexinfintech Holdings 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 Nerdwallet with a short position of Lexinfintech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nerdwallet and Lexinfintech Holdings.
Diversification Opportunities for Nerdwallet and Lexinfintech Holdings
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nerdwallet and Lexinfintech is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nerdwallet and Lexinfintech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexinfintech Holdings and Nerdwallet 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 Nerdwallet are associated (or correlated) with Lexinfintech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexinfintech Holdings has no effect on the direction of Nerdwallet i.e., Nerdwallet and Lexinfintech Holdings go up and down completely randomly.
Pair Corralation between Nerdwallet and Lexinfintech Holdings
Given the investment horizon of 90 days Nerdwallet is expected to generate 0.58 times more return on investment than Lexinfintech Holdings. However, Nerdwallet is 1.72 times less risky than Lexinfintech Holdings. It trades about 0.04 of its potential returns per unit of risk. Lexinfintech Holdings is currently generating about -0.29 per unit of risk. If you would invest 1,458 in Nerdwallet on September 13, 2025 and sell it today you would earn a total of 18.00 from holding Nerdwallet or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nerdwallet vs. Lexinfintech Holdings
Performance |
| Timeline |
| Nerdwallet |
| Lexinfintech Holdings |
Nerdwallet and Lexinfintech Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nerdwallet and Lexinfintech Holdings
The main advantage of trading using opposite Nerdwallet and Lexinfintech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nerdwallet position performs unexpectedly, Lexinfintech Holdings 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 Lexinfintech Holdings will offset losses from the drop in Lexinfintech Holdings' long position.| Nerdwallet vs. Qudian Inc | Nerdwallet vs. Atlanticus Holdings | Nerdwallet vs. Lexinfintech Holdings | Nerdwallet vs. Barings BDC |
| Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. World Acceptance | Lexinfintech Holdings vs. Nerdwallet |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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