Correlation Between Clough Global and GAMCO Natural
Can any of the company-specific risk be diversified away by investing in both Clough Global and GAMCO Natural 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 GAMCO Natural 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 GAMCO Natural Resources, you can compare the effects of market volatilities on Clough Global and GAMCO Natural 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 GAMCO Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and GAMCO Natural.
Diversification Opportunities for Clough Global and GAMCO Natural
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clough and GAMCO is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Ef and GAMCO Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMCO Natural Resources 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 GAMCO Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMCO Natural Resources has no effect on the direction of Clough Global i.e., Clough Global and GAMCO Natural go up and down completely randomly.
Pair Corralation between Clough Global and GAMCO Natural
Considering the 90-day investment horizon Clough Global Ef is expected to generate 0.83 times more return on investment than GAMCO Natural. However, Clough Global Ef is 1.21 times less risky than GAMCO Natural. It trades about 0.05 of its potential returns per unit of risk. GAMCO Natural Resources is currently generating about -0.03 per unit of risk. If you would invest 679.00 in Clough Global Ef on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Clough Global Ef or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clough Global Ef vs. GAMCO Natural Resources
Performance |
| Timeline |
| Clough Global Ef |
| GAMCO Natural Resources |
Clough Global and GAMCO Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clough Global and GAMCO Natural
The main advantage of trading using opposite Clough Global and GAMCO Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global position performs unexpectedly, GAMCO Natural 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 GAMCO Natural will offset losses from the drop in GAMCO Natural'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 |
| GAMCO Natural vs. Blackrock Floating Rate | GAMCO Natural vs. Eaton Vance Senior | GAMCO Natural vs. Eaton Vance Senior | GAMCO Natural vs. Blackrock Debt Strategies |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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