Correlation Between Blue Owl and Hamilton Lane

Can any of the company-specific risk be diversified away by investing in both Blue Owl 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 Blue Owl and Hamilton Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blue Owl Capital and Hamilton Lane, you can compare the effects of market volatilities on Blue Owl 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 Blue Owl with a short position of Hamilton Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and Hamilton Lane.

Diversification Opportunities for Blue Owl and Hamilton Lane

0.66

Correlation Coefficient

Blue Owl  Hamilton Lane

Poor diversification

The 3 months correlation between Blue and Hamilton is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and Hamilton Lane in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane and Blue Owl 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 Blue Owl Capital 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 Blue Owl i.e., Blue Owl and Hamilton Lane go up and down completely randomly.

Pair Corralation between Blue Owl and Hamilton Lane

Considering the 90-day investment horizon Blue Owl Capital is expected to under-perform the Hamilton Lane. In addition to that, Blue Owl is 1.08 times more volatile than Hamilton Lane. It trades about -0.05 of its total potential returns per unit of risk. Hamilton Lane is currently generating about 0.03 per unit of volatility. If you would invest  14,726  in Hamilton Lane on December 28, 2024 and sell it today you would earn a total of  355.00  from holding Hamilton Lane or generate 2.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Blue Owl Capital  vs.  Hamilton Lane

Blue Owl Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blue Owl Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Hamilton Lane

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Lane are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hamilton Lane is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Blue Owl and Hamilton Lane

The main advantage of trading using opposite Blue Owl and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl 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.

The idea behind Blue Owl Capital and Hamilton Lane pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.