Correlation Between Ellsworth Convertible and Clough Global
Can any of the company-specific risk be diversified away by investing in both Ellsworth Convertible 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 Ellsworth Convertible and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Convertible Growth and Clough Global Opportunities, you can compare the effects of market volatilities on Ellsworth Convertible 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 Ellsworth Convertible with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Convertible and Clough Global.
Diversification Opportunities for Ellsworth Convertible and Clough Global
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ellsworth and Clough is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Convertible Growth 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 Ellsworth Convertible 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 Ellsworth Convertible Growth 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 Ellsworth Convertible i.e., Ellsworth Convertible and Clough Global go up and down completely randomly.
Pair Corralation between Ellsworth Convertible and Clough Global
Considering the 90-day investment horizon Ellsworth Convertible Growth is expected to generate 1.08 times more return on investment than Clough Global. However, Ellsworth Convertible is 1.08 times more volatile than Clough Global Opportunities. It trades about 0.02 of its potential returns per unit of risk. Clough Global Opportunities is currently generating about 0.01 per unit of risk. If you would invest 996.00 in Ellsworth Convertible Growth on November 4, 2024 and sell it today you would earn a total of 8.00 from holding Ellsworth Convertible Growth or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Convertible Growth vs. Clough Global Opportunities
Performance |
| Timeline |
| Ellsworth Convertible |
| Clough Global Opport |
Ellsworth Convertible and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Convertible and Clough Global
The main advantage of trading using opposite Ellsworth Convertible and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Convertible 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.| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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