Correlation Between Hamilton Lane and BlackRock
Can any of the company-specific risk be diversified away by investing in both Hamilton Lane and BlackRock 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 BlackRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Lane and BlackRock, you can compare the effects of market volatilities on Hamilton Lane and BlackRock 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 BlackRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Lane and BlackRock.
Diversification Opportunities for Hamilton Lane and BlackRock
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and BlackRock is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Lane and BlackRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock 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 BlackRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock has no effect on the direction of Hamilton Lane i.e., Hamilton Lane and BlackRock go up and down completely randomly.
Pair Corralation between Hamilton Lane and BlackRock
Given the investment horizon of 90 days Hamilton Lane is expected to generate 1.58 times more return on investment than BlackRock. However, Hamilton Lane is 1.58 times more volatile than BlackRock. It trades about 0.26 of its potential returns per unit of risk. BlackRock is currently generating about 0.23 per unit of risk. If you would invest 15,096 in Hamilton Lane on August 23, 2024 and sell it today you would earn a total of 4,721 from holding Hamilton Lane or generate 31.27% 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. BlackRock
Performance |
| Timeline |
| Hamilton Lane |
| BlackRock |
Hamilton Lane and BlackRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Lane and BlackRock
The main advantage of trading using opposite Hamilton Lane and BlackRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Lane position performs unexpectedly, BlackRock 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 BlackRock will offset losses from the drop in BlackRock'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 |
| BlackRock vs. KKR Co LP | BlackRock vs. Apollo Global Management | BlackRock vs. Brookfield Asset Management | BlackRock vs. Carlyle Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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