Correlation Between Brookfield Asset and Hamilton Lane
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset and Hamilton Lane 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 Brookfield Asset and Hamilton Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Asset Management and Hamilton Lane, you can compare the effects of market volatilities on Brookfield Asset and Hamilton Lane 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 Brookfield Asset with a short position of Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and Hamilton Lane.
Diversification Opportunities for Brookfield Asset and Hamilton Lane
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Brookfield and Hamilton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane and Brookfield Asset 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 Brookfield Asset Management are associated (or correlated) with Hamilton Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Lane has no effect on the direction of Brookfield Asset i.e., Brookfield Asset and Hamilton Lane go up and down completely randomly.
Pair Corralation between Brookfield Asset and Hamilton Lane
Considering the 90-day investment horizon Brookfield Asset is expected to generate 1.15 times less return on investment than Hamilton Lane. But when comparing it to its historical volatility, Brookfield Asset Management is 1.46 times less risky than Hamilton Lane. It trades about 0.29 of its potential returns per unit of risk. Hamilton Lane is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 17,778 in Hamilton Lane on August 23, 2024 and sell it today you would earn a total of 2,039 from holding Hamilton Lane or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Asset Management vs. Hamilton Lane
Performance |
| Timeline |
| Brookfield Asset Man |
| Hamilton Lane |
Brookfield Asset and Hamilton Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and Hamilton Lane
The main advantage of trading using opposite Brookfield Asset and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset position performs unexpectedly, Hamilton Lane 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 Hamilton Lane will offset losses from the drop in Hamilton Lane's long position.| Brookfield Asset vs. KKR Co LP | Brookfield Asset vs. Blackstone Group | Brookfield Asset vs. Apollo Global Management | Brookfield Asset vs. T Rowe Price |
| Hamilton Lane vs. Brightsphere Investment Group | Hamilton Lane vs. Noah Holdings | Hamilton Lane vs. Alvarium Tiedemann Holdings | Hamilton Lane vs. Blackrock Muniyield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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