Correlation Between GAMCO Natural and Clough Global
Can any of the company-specific risk be diversified away by investing in both GAMCO Natural 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 GAMCO Natural and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Natural Resources and Clough Global Opportunities, you can compare the effects of market volatilities on GAMCO Natural 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 GAMCO Natural with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Natural and Clough Global.
Diversification Opportunities for GAMCO Natural and Clough Global
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GAMCO and Clough is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Natural Resources 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 GAMCO Natural 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 GAMCO Natural Resources 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 GAMCO Natural i.e., GAMCO Natural and Clough Global go up and down completely randomly.
Pair Corralation between GAMCO Natural and Clough Global
Considering the 90-day investment horizon GAMCO Natural Resources is expected to generate 1.07 times more return on investment than Clough Global. However, GAMCO Natural is 1.07 times more volatile than Clough Global Opportunities. It trades about 0.12 of its potential returns per unit of risk. Clough Global Opportunities is currently generating about 0.12 per unit of risk. If you would invest 440.00 in GAMCO Natural Resources on September 1, 2024 and sell it today you would earn a total of 150.00 from holding GAMCO Natural Resources or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Natural Resources vs. Clough Global Opportunities
Performance |
| Timeline |
| GAMCO Natural Resources |
| Clough Global Opport |
GAMCO Natural and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Natural and Clough Global
The main advantage of trading using opposite GAMCO Natural and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Natural 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.| GAMCO Natural vs. MFS Investment Grade | GAMCO Natural vs. Invesco High Income | GAMCO Natural vs. Eaton Vance National | GAMCO Natural vs. Federated Premier Municipal |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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