Correlation Between Corus Entertainment and Hamilton Lane

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

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

Diversification Opportunities for Corus Entertainment and Hamilton Lane

0.19

Correlation Coefficient

Corus Entertainment  Hamilton Lane

Average diversification

The 3 months correlation between Corus and Hamilton is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Corus Entertainment and Hamilton Lane Private in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Lane Private and Corus Entertainment 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 Corus Entertainment 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 Private has no effect on the direction of Corus Entertainment i.e., Corus Entertainment and Hamilton Lane go up and down completely randomly.

Pair Corralation between Corus Entertainment and Hamilton Lane

Assuming the 90 days trading horizon Corus Entertainment is expected to under-perform the Hamilton Lane. But the stock apears to be less risky and, when comparing its historical volatility, Corus Entertainment is 1.53 times less risky than Hamilton Lane. The stock trades about -0.06 of its potential returns per unit of risk. The Hamilton Lane Private is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  1,191  in Hamilton Lane Private on January 19, 2024 and sell it today you would earn a total of  381.00  from holding Hamilton Lane Private or generate 31.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.39%
Values	Daily Returns

Corus Entertainment  vs.  Hamilton Lane Private

Corus Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Corus Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Hamilton Lane Private

Risk-Adjusted Performance

0 of 100

Excellent

Over the last 90 days Hamilton Lane Private has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak forward indicators, Hamilton Lane showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corus Entertainment and Hamilton Lane

The main advantage of trading using opposite Corus Entertainment and Hamilton Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corus Entertainment 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 Corus Entertainment and Hamilton Lane Private 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.