Correlation Between Hamilton Lane and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Hamilton Lane and Gladstone Investment 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 Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Lane and Gladstone Investment, you can compare the effects of market volatilities on Hamilton Lane and Gladstone Investment 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 Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Lane and Gladstone Investment.
Diversification Opportunities for Hamilton Lane and Gladstone Investment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Gladstone is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Lane and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment 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 Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of Hamilton Lane i.e., Hamilton Lane and Gladstone Investment go up and down completely randomly.
Pair Corralation between Hamilton Lane and Gladstone Investment
Given the investment horizon of 90 days Hamilton Lane is expected to generate 1.44 times more return on investment than Gladstone Investment. However, Hamilton Lane is 1.44 times more volatile than Gladstone Investment. It trades about 0.12 of its potential returns per unit of risk. Gladstone Investment is currently generating about 0.07 per unit of risk. If you would invest 6,366 in Hamilton Lane on September 12, 2024 and sell it today you would earn a total of 11,186 from holding Hamilton Lane or generate 175.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Lane vs. Gladstone Investment
Performance |
| Timeline |
| Hamilton Lane |
| Gladstone Investment |
Hamilton Lane and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Lane and Gladstone Investment
The main advantage of trading using opposite Hamilton Lane and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Lane position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| Hamilton Lane vs. Gladstone Investment | Hamilton Lane vs. Stellus Capital Investment | Hamilton Lane vs. Prospect Capital | Hamilton Lane vs. Gladstone Capital |
| Gladstone Investment vs. Stellus Capital Investment | Gladstone Investment vs. Prospect Capital | Gladstone Investment vs. Gladstone Capital | Gladstone Investment vs. Main Street Capital |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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