Correlation Between Hamilton Lane and Brookfield Asset
Can any of the company-specific risk be diversified away by investing in both Hamilton Lane and Brookfield Asset 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 Hamilton Lane and Brookfield Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Lane and Brookfield Asset Management, you can compare the effects of market volatilities on Hamilton Lane and Brookfield Asset 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 Hamilton Lane with a short position of Brookfield Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Lane and Brookfield Asset.
Diversification Opportunities for Hamilton Lane and Brookfield Asset
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and Brookfield is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Lane and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man and Hamilton Lane 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 Hamilton Lane are associated (or correlated) with Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of Hamilton Lane i.e., Hamilton Lane and Brookfield Asset go up and down completely randomly.
Pair Corralation between Hamilton Lane and Brookfield Asset
Given the investment horizon of 90 days Hamilton Lane is expected to generate 1.46 times more return on investment than Brookfield Asset. However, Hamilton Lane is 1.46 times more volatile than Brookfield Asset Management. It trades about 0.23 of its potential returns per unit of risk. Brookfield Asset Management is currently generating about 0.29 per unit of risk. 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 |
Hamilton Lane vs. Brookfield Asset Management
Performance |
| Timeline |
| Hamilton Lane |
| Brookfield Asset Man |
Hamilton Lane and Brookfield Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Lane and Brookfield Asset
The main advantage of trading using opposite Hamilton Lane and Brookfield Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Lane position performs unexpectedly, Brookfield Asset 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 Brookfield Asset will offset losses from the drop in Brookfield Asset's long position.| Hamilton Lane vs. Brightsphere Investment Group | Hamilton Lane vs. Noah Holdings | Hamilton Lane vs. Alvarium Tiedemann Holdings | Hamilton Lane vs. Blackrock Muniyield |
| Brookfield Asset vs. KKR Co LP | Brookfield Asset vs. Blackstone Group | Brookfield Asset vs. Apollo Global Management | Brookfield Asset vs. T Rowe Price |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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