Correlation Between Blackrock Muniyield and Hamilton Lane
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield 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 Blackrock Muniyield and Hamilton Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniyield and Hamilton Lane, you can compare the effects of market volatilities on Blackrock Muniyield 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 Blackrock Muniyield with a short position of Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Hamilton Lane.
Diversification Opportunities for Blackrock Muniyield and Hamilton Lane
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackrock and Hamilton is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane and Blackrock Muniyield 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 Blackrock Muniyield 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 Blackrock Muniyield i.e., Blackrock Muniyield and Hamilton Lane go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Hamilton Lane
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 6.1 times less return on investment than Hamilton Lane. But when comparing it to its historical volatility, Blackrock Muniyield is 3.45 times less risky than Hamilton Lane. It trades about 0.11 of its potential returns per unit of risk. Hamilton Lane is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 12,905 in Hamilton Lane on August 24, 2024 and sell it today you would earn a total of 6,912 from holding Hamilton Lane or generate 53.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Blackrock Muniyield vs. Hamilton Lane
Performance |
| Timeline |
| Blackrock Muniyield |
| Hamilton Lane |
Blackrock Muniyield and Hamilton Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Hamilton Lane
The main advantage of trading using opposite Blackrock Muniyield and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield 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.| Blackrock Muniyield vs. Tekla Healthcare Investors | Blackrock Muniyield vs. Blackrock Enhanced Capital | Blackrock Muniyield vs. Tekla Life Sciences | Blackrock Muniyield vs. Nuveen New York |
| Hamilton Lane vs. Brightsphere Investment Group | Hamilton Lane vs. Noah Holdings | Hamilton Lane vs. Alvarium Tiedemann Holdings | Hamilton Lane vs. Blackrock Muniyield |
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 Stocks Directory module to find actively traded stocks across global markets.
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