Correlation Between Tikehau Capital and Hamilton Global

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

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

Diversification Opportunities for Tikehau Capital and Hamilton Global

-0.82

Correlation Coefficient

Tikehau Capital  Hamilton Global

Pay attention - limited upside

The 3 months correlation between Tikehau and Hamilton is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tikehau Capital and Hamilton Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Global Oppo and Tikehau Capital 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 Tikehau Capital are associated (or correlated) with Hamilton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Global Oppo has no effect on the direction of Tikehau Capital i.e., Tikehau Capital and Hamilton Global go up and down completely randomly.

Pair Corralation between Tikehau Capital and Hamilton Global

Assuming the 90 days trading horizon Tikehau Capital is expected to generate 1.42 times more return on investment than Hamilton Global. However, Tikehau Capital is 1.42 times more volatile than Hamilton Global Opportunities. It trades about -0.01 of its potential returns per unit of risk. Hamilton Global Opportunities is currently generating about -0.03 per unit of risk. If you would invest  2,332  in Tikehau Capital on September 28, 2024 and sell it today you would lose (272.00) from holding Tikehau Capital or give up 11.66% of portfolio value over 90 days.

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

Tikehau Capital  vs.  Hamilton Global Opportunities

Tikehau Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tikehau Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Hamilton Global Oppo

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Global Opportunities are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Hamilton Global is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Tikehau Capital and Hamilton Global

The main advantage of trading using opposite Tikehau Capital and Hamilton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tikehau Capital position performs unexpectedly, Hamilton Global 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 Global will offset losses from the drop in Hamilton Global's long position.

The idea behind Tikehau Capital and Hamilton Global Opportunities 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.