Correlation Between Eaton Vance and Clough Global
Can any of the company-specific risk be diversified away by investing in both Eaton Vance 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 Eaton Vance and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Clough Global Ef, you can compare the effects of market volatilities on Eaton Vance 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 Eaton Vance with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Clough Global.
Diversification Opportunities for Eaton Vance and Clough Global
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and Clough is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Clough Global Ef in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clough Global Ef and Eaton Vance 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 Eaton Vance National 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 Ef has no effect on the direction of Eaton Vance i.e., Eaton Vance and Clough Global go up and down completely randomly.
Pair Corralation between Eaton Vance and Clough Global
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Clough Global. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 1.57 times less risky than Clough Global. The stock trades about -0.05 of its potential returns per unit of risk. The Clough Global Ef is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 679.00 in Clough Global Ef on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Clough Global Ef or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eaton Vance National vs. Clough Global Ef
Performance |
| Timeline |
| Eaton Vance National |
| Clough Global Ef |
Eaton Vance and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Clough Global
The main advantage of trading using opposite Eaton Vance and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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.| Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade |
| Clough Global vs. Gabelli Global Small | Clough Global vs. MFS Investment Grade | Clough Global vs. Eaton Vance National | Clough Global vs. GAMCO Natural Resources |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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