Monthly Archive for: ‘September, 2013’

Lending Club Data Analysis of Variance – ANOVA

6662958 Data Analysis With Magnifying Glass

Contents ANOVA Interpretation ANOVA In this article, we are going to perform an analysis of variances which is commonly referred to as ANOVA in statistics. ANOVA enables the comparison of means for multiple groups or populations.  It looks at the variance “between” the attribute over the variance “within” the attribute.   In this case, we want to understand the variance …

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Version 3.4 Released


Contents New Features Complete Change Log: New Features Interest Rate Credit Risk Spread: New in version 3.4, you can now select loans based on potential return on investment expressed as the difference between the borrower’s annualized interest rate and expected default rate.  The spread represents potential return relative to risk. Lending Club does not provide expected default rates for historical loans. …

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Efficient Frontier Portfolio Optimization

Efficient Frontier

Contents Overview  Benchmark Portfolio Benchmark Portfolio Optimization AI Classification Portfolio Optimization Conclusion Overview  The notion of diversification involves the age-old “don’t  put all your eggs in one basket”.  Obviously, increasing  the number of loans in your portfolio lowers risk as it  minimizes the impact of defaults.  However, does  diversifying the class (grade) of loans in your portfolio  improve return while …

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Creating a Lending Club Custom Loan Filter

Filter Data

Contents Custom Loan Filters A little Background What is Your Personality Take the Easy Route Developing a Filter From Scratch Final Remarks Custom Loan Filters On of the first questions that most P2P investors  have is “What filter should I use to select loans that will maximize return?”  In this article, take a look at how to use Peer Lending …

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