Correlation Between Brookfield Corp and Hamilton Lane
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp 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 Corp 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 Corp and Hamilton Lane, you can compare the effects of market volatilities on Brookfield Corp 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 Corp with a short position of Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Hamilton Lane.
Diversification Opportunities for Brookfield Corp 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 Corp and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane and Brookfield 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 Brookfield Corp 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 Corp i.e., Brookfield Corp and Hamilton Lane go up and down completely randomly.
Pair Corralation between Brookfield Corp and Hamilton Lane
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 0.67 times more return on investment than Hamilton Lane. However, Brookfield Corp is 1.5 times less risky than Hamilton Lane. It trades about 0.38 of its potential returns per unit of risk. Hamilton Lane is currently generating about 0.11 per unit of risk. If you would invest 5,404 in Brookfield Corp on August 31, 2024 and sell it today you would earn a total of 733.00 from holding Brookfield Corp or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Hamilton Lane
Performance |
| Timeline |
| Brookfield Corp |
| Hamilton Lane |
Brookfield Corp and Hamilton Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Hamilton Lane
The main advantage of trading using opposite Brookfield Corp and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp 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 Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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