Correlation Between Clough Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Clough Global and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clough Global Ef and Eaton Vance New, you can compare the effects of market volatilities on Clough Global and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and Eaton Vance.
Diversification Opportunities for Clough Global and Eaton Vance
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clough and Eaton is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Ef and Eaton Vance New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance New 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 Ef are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance New has no effect on the direction of Clough Global i.e., Clough Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Clough Global and Eaton Vance
Considering the 90-day investment horizon Clough Global Ef is expected to generate 1.06 times more return on investment than Eaton Vance. However, Clough Global is 1.06 times more volatile than Eaton Vance New. It trades about 0.05 of its potential returns per unit of risk. Eaton Vance New is currently generating about 0.04 per unit of risk. If you would invest 564.00 in Clough Global Ef on September 2, 2024 and sell it today you would earn a total of 122.00 from holding Clough Global Ef or generate 21.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clough Global Ef vs. Eaton Vance New
Performance |
| Timeline |
| Clough Global Ef |
| Eaton Vance New |
Clough Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clough Global and Eaton Vance
The main advantage of trading using opposite Clough Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Clough Global vs. Allianzgi Convertible Income | Clough Global vs. MFS Investment Grade | Clough Global vs. Eaton Vance Senior | Clough Global vs. Stone Harbor Emerging |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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