Correlation Between Clough Global and Special Opportunities
Can any of the company-specific risk be diversified away by investing in both Clough Global and Special Opportunities 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 Special Opportunities 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 Special Opportunities Closed, you can compare the effects of market volatilities on Clough Global and Special Opportunities 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 Special Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and Special Opportunities.
Diversification Opportunities for Clough Global and Special Opportunities
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clough and Special is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Opportunities and Special Opportunities Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Special Opportunities 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 Special Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Special Opportunities has no effect on the direction of Clough Global i.e., Clough Global and Special Opportunities go up and down completely randomly.
Pair Corralation between Clough Global and Special Opportunities
Considering the 90-day investment horizon Clough Global Opportunities is expected to generate 1.61 times more return on investment than Special Opportunities. However, Clough Global is 1.61 times more volatile than Special Opportunities Closed. It trades about 0.29 of its potential returns per unit of risk. Special Opportunities Closed is currently generating about 0.45 per unit of risk. If you would invest 504.00 in Clough Global Opportunities on November 2, 2024 and sell it today you would earn a total of 30.00 from holding Clough Global Opportunities or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clough Global Opportunities vs. Special Opportunities Closed
Performance |
| Timeline |
| Clough Global Opport |
| Special Opportunities |
Clough Global and Special Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clough Global and Special Opportunities
The main advantage of trading using opposite Clough Global and Special Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global position performs unexpectedly, Special Opportunities 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 Special Opportunities will offset losses from the drop in Special Opportunities' 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 |
| Special Opportunities vs. Ares Dynamic Credit | Special Opportunities vs. Lazard Global Total | Special Opportunities vs. Principal Real Estate | Special Opportunities vs. Tortoise Capital Series |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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