Correlation Between Clough Global and Voya Asia
Can any of the company-specific risk be diversified away by investing in both Clough Global and Voya Asia 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 Clough Global and Voya Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clough Global Opportunities and Voya Asia Pacific, you can compare the effects of market volatilities on Clough Global and Voya Asia 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 Clough Global with a short position of Voya Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and Voya Asia.
Diversification Opportunities for Clough Global and Voya Asia
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clough and Voya is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Opportunities and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific and Clough Global 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 Clough Global Opportunities are associated (or correlated) with Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of Clough Global i.e., Clough Global and Voya Asia go up and down completely randomly.
Pair Corralation between Clough Global and Voya Asia
Considering the 90-day investment horizon Clough Global Opportunities is expected to generate 1.45 times more return on investment than Voya Asia. However, Clough Global is 1.45 times more volatile than Voya Asia Pacific. It trades about 0.09 of its potential returns per unit of risk. Voya Asia Pacific is currently generating about 0.1 per unit of risk. If you would invest 517.00 in Clough Global Opportunities on November 4, 2024 and sell it today you would earn a total of 9.00 from holding Clough Global Opportunities or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clough Global Opportunities vs. Voya Asia Pacific
Performance |
| Timeline |
| Clough Global Opport |
| Voya Asia Pacific |
Clough Global and Voya Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clough Global and Voya Asia
The main advantage of trading using opposite Clough Global and Voya Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global position performs unexpectedly, Voya Asia 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 Voya Asia will offset losses from the drop in Voya Asia's long position.| Clough Global vs. Clough Global Allocation | Clough Global vs. Voya Asia Pacific | Clough Global vs. Aberdeen Global IF | Clough Global vs. RiverNorthDoubleLine Strategic Opportunity |
| Voya Asia vs. The Gabelli Multimedia | Voya Asia vs. The Gabelli Equity | Voya Asia vs. Virtus AllianzGI Convertible | Voya Asia vs. The Gabelli Equity |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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