Correlation Between Eagle Point and Clough Global
Can any of the company-specific risk be diversified away by investing in both Eagle Point 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 Eagle Point and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Clough Global Allocation, you can compare the effects of market volatilities on Eagle Point 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 Eagle Point with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Clough Global.
Diversification Opportunities for Eagle Point and Clough Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Clough is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Clough Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clough Global Allocation and Eagle Point 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 Eagle Point Credit 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 Allocation has no effect on the direction of Eagle Point i.e., Eagle Point and Clough Global go up and down completely randomly.
Pair Corralation between Eagle Point and Clough Global
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the Clough Global. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Point Credit is 1.73 times less risky than Clough Global. The stock trades about -0.23 of its potential returns per unit of risk. The Clough Global Allocation is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 535.00 in Clough Global Allocation on November 2, 2024 and sell it today you would earn a total of 16.00 from holding Clough Global Allocation or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. Clough Global Allocation
Performance |
| Timeline |
| Eagle Point Credit |
| Clough Global Allocation |
Eagle Point and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Clough Global
The main advantage of trading using opposite Eagle Point and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point 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.| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
| Clough Global vs. Clough Global Opportunities | Clough Global vs. Voya Asia Pacific | Clough Global vs. Allianzgi Convertible Income | Clough Global vs. Nuveen Municipal Credit |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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