Correlation Between NYSE Composite and Hamilton Lane
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Hamilton Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Hamilton Lane, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Hamilton Lane.
Diversification Opportunities for NYSE Composite and Hamilton Lane
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Hamilton is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Hamilton Lane go up and down completely randomly.
Pair Corralation between NYSE Composite and Hamilton Lane
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.35 times less return on investment than Hamilton Lane. But when comparing it to its historical volatility, NYSE Composite is 2.91 times less risky than Hamilton Lane. It trades about 0.17 of its potential returns per unit of risk. Hamilton Lane is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 14,806 in Hamilton Lane on August 31, 2024 and sell it today you would earn a total of 4,396 from holding Hamilton Lane or generate 29.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Hamilton Lane
Performance |
| Timeline |
NYSE Composite and Hamilton Lane Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Hamilton Lane
Pair trading matchups for Hamilton Lane
Pair Trading with NYSE Composite and Hamilton Lane
The main advantage of trading using opposite NYSE Composite and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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