Correlation Between Clough Global and Clough Global
Can any of the company-specific risk be diversified away by investing in both Clough Global 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 Clough Global and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clough Global Allocation and Clough Global Opportunities, you can compare the effects of market volatilities on Clough Global 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 Clough Global with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and Clough Global.
Diversification Opportunities for Clough Global and Clough Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clough and Clough is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Allocation and Clough Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clough Global Opport 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 Allocation 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 Opport has no effect on the direction of Clough Global i.e., Clough Global and Clough Global go up and down completely randomly.
Pair Corralation between Clough Global and Clough Global
Considering the 90-day investment horizon Clough Global is expected to generate 3.06 times less return on investment than Clough Global. In addition to that, Clough Global is 1.55 times more volatile than Clough Global Opportunities. It trades about 0.01 of its total potential returns per unit of risk. Clough Global Opportunities is currently generating about 0.06 per unit of volatility. If you would invest 523.00 in Clough Global Opportunities on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Clough Global Opportunities or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clough Global Allocation vs. Clough Global Opportunities
Performance |
| Timeline |
| Clough Global Allocation |
| Clough Global Opport |
Clough Global and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clough Global and Clough Global
The main advantage of trading using opposite Clough Global and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global 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.| Clough Global vs. Ares Dynamic Credit | Clough Global vs. Principal Real Estate | Clough Global vs. Tortoise Power And | Clough Global vs. Aquagold International |
| Clough Global vs. Clough Global Allocation | Clough Global vs. Voya Asia Pacific | Clough Global vs. Aberdeen Global IF | Clough Global vs. RiverNorthDoubleLine Strategic Opportunity |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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