Correlation Between Hamilton Lane and Noah Holdings
Can any of the company-specific risk be diversified away by investing in both Hamilton Lane and Noah Holdings 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 Noah Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Lane and Noah Holdings, you can compare the effects of market volatilities on Hamilton Lane and Noah Holdings 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 Noah Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Lane and Noah Holdings.
Diversification Opportunities for Hamilton Lane and Noah Holdings
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Noah is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Lane and Noah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noah Holdings 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 Noah Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noah Holdings has no effect on the direction of Hamilton Lane i.e., Hamilton Lane and Noah Holdings go up and down completely randomly.
Pair Corralation between Hamilton Lane and Noah Holdings
Given the investment horizon of 90 days Hamilton Lane is expected to generate 0.95 times more return on investment than Noah Holdings. However, Hamilton Lane is 1.06 times less risky than Noah Holdings. It trades about 0.14 of its potential returns per unit of risk. Noah Holdings is currently generating about -0.08 per unit of risk. If you would invest 15,027 in Hamilton Lane on November 4, 2024 and sell it today you would earn a total of 891.00 from holding Hamilton Lane or generate 5.93% 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. Noah Holdings
Performance |
| Timeline |
| Hamilton Lane |
| Noah Holdings |
Hamilton Lane and Noah Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Lane and Noah Holdings
The main advantage of trading using opposite Hamilton Lane and Noah Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Lane position performs unexpectedly, Noah Holdings 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 Noah Holdings will offset losses from the drop in Noah Holdings' long position.| Hamilton Lane vs. Noah Holdings | Hamilton Lane vs. Alvarium Tiedemann Holdings | Hamilton Lane vs. Blackrock Muniyield | Hamilton Lane vs. Blackrock Muni Intermediate |
| Noah Holdings vs. MFS Investment Grade | Noah Holdings vs. Eaton Vance National | Noah Holdings vs. Nuveen California Select | Noah Holdings vs. Blackrock Munivest |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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