Correlation Between Blackstone and Hamilton Lane
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Hamilton Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Hamilton Lane, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Hamilton Lane.
Diversification Opportunities for Blackstone and Hamilton Lane
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Hamilton is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane and Blackstone 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 Blackstone 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 Blackstone i.e., Blackstone and Hamilton Lane go up and down completely randomly.
Pair Corralation between Blackstone and Hamilton Lane
Allowing for the 90-day total investment horizon Blackstone Group is expected to under-perform the Hamilton Lane. But the stock apears to be less risky and, when comparing its historical volatility, Blackstone Group is 1.37 times less risky than Hamilton Lane. The stock trades about -0.2 of its potential returns per unit of risk. The Hamilton Lane is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 15,026 in Hamilton Lane on November 18, 2024 and sell it today you would earn a total of 593.00 from holding Hamilton Lane or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Hamilton Lane
Performance |
| Timeline |
| Blackstone Group |
| Hamilton Lane |
Blackstone and Hamilton Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Hamilton Lane
The main advantage of trading using opposite Blackstone and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Hamilton Lane vs. Noah Holdings | Hamilton Lane vs. Alvarium Tiedemann Holdings | Hamilton Lane vs. Blackrock Muniyield | Hamilton Lane vs. Blackrock Muni Intermediate |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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