Correlation Between Brightsphere Investment and Hamilton Lane
Can any of the company-specific risk be diversified away by investing in both Brightsphere Investment 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 Brightsphere Investment and Hamilton Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brightsphere Investment Group and Hamilton Lane, you can compare the effects of market volatilities on Brightsphere Investment 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 Brightsphere Investment with a short position of Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brightsphere Investment and Hamilton Lane.
Diversification Opportunities for Brightsphere Investment and Hamilton Lane
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brightsphere and Hamilton is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Brightsphere Investment Group and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane and Brightsphere Investment 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 Brightsphere Investment Group 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 Brightsphere Investment i.e., Brightsphere Investment and Hamilton Lane go up and down completely randomly.
Pair Corralation between Brightsphere Investment and Hamilton Lane
Given the investment horizon of 90 days Brightsphere Investment is expected to generate 1.4 times less return on investment than Hamilton Lane. In addition to that, Brightsphere Investment is 1.04 times more volatile than Hamilton Lane. It trades about 0.13 of its total potential returns per unit of risk. Hamilton Lane is currently generating about 0.19 per unit of volatility. If you would invest 12,905 in Hamilton Lane on August 24, 2024 and sell it today you would earn a total of 6,912 from holding Hamilton Lane or generate 53.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brightsphere Investment Group vs. Hamilton Lane
Performance |
| Timeline |
| Brightsphere Investment |
| Hamilton Lane |
Brightsphere Investment and Hamilton Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brightsphere Investment and Hamilton Lane
The main advantage of trading using opposite Brightsphere Investment and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brightsphere Investment 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.| Brightsphere Investment vs. DWS Municipal Income | Brightsphere Investment vs. Blackrock Munivest | Brightsphere Investment vs. SEI Investments | Brightsphere Investment vs. SCOR PK |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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