Correlation Between MFS Special and Clough Global
Can any of the company-specific risk be diversified away by investing in both MFS Special 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 MFS Special and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Special Value and Clough Global Opportunities, you can compare the effects of market volatilities on MFS Special 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 MFS Special with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Special and Clough Global.
Diversification Opportunities for MFS Special and Clough Global
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MFS and Clough is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MFS Special Value 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 MFS Special 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 MFS Special Value 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 MFS Special i.e., MFS Special and Clough Global go up and down completely randomly.
Pair Corralation between MFS Special and Clough Global
If you would invest 524.00 in Clough Global Opportunities on November 4, 2024 and sell it today you would earn a total of 2.00 from holding Clough Global Opportunities or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.5% |
| Values | Daily Returns |
MFS Special Value vs. Clough Global Opportunities
Performance |
| Timeline |
| MFS Special Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Clough Global Opport |
MFS Special and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Special and Clough Global
The main advantage of trading using opposite MFS Special and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Special 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.| MFS Special vs. Brookfield Business Corp | MFS Special vs. Elysee Development Corp | MFS Special vs. DWS Municipal Income | MFS Special vs. Blackrock Munivest |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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