Correlation Between MFS Investment and Clough Global
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Clough 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 MFS Investment and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Investment Grade and Clough Global Opportunities, you can compare the effects of market volatilities on MFS Investment and Clough 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 MFS Investment with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Clough Global.
Diversification Opportunities for MFS Investment and Clough Global
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MFS and Clough is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Clough Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clough Global Opport and MFS Investment 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 MFS Investment Grade are associated (or correlated) with Clough Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clough Global Opport has no effect on the direction of MFS Investment i.e., MFS Investment and Clough Global go up and down completely randomly.
Pair Corralation between MFS Investment and Clough Global
Considering the 90-day investment horizon MFS Investment is expected to generate 1.48 times less return on investment than Clough Global. But when comparing it to its historical volatility, MFS Investment Grade is 1.62 times less risky than Clough Global. It trades about 0.07 of its potential returns per unit of risk. Clough Global Opportunities is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 386.00 in Clough Global Opportunities on November 27, 2024 and sell it today you would earn a total of 133.00 from holding Clough Global Opportunities or generate 34.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MFS Investment Grade vs. Clough Global Opportunities
Performance |
| Timeline |
| MFS Investment Grade |
| Clough Global Opport |
MFS Investment and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Clough Global
The main advantage of trading using opposite MFS Investment and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Clough 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 Clough Global will offset losses from the drop in Clough Global's long position.| MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| Clough Global vs. Clough Global Allocation | Clough Global vs. Voya Asia Pacific | Clough Global vs. Aberdeen Global IF | Clough Global vs. RiverNorthDoubleLine Strategic Opportunity |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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