Correlation Between NYSE Composite and Clough Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Clough Global Ef, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Clough Global.
Diversification Opportunities for NYSE Composite and Clough Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Clough is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Clough Global Ef in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clough Global Ef and NYSE Composite 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 NYSE Composite 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 Ef has no effect on the direction of NYSE Composite i.e., NYSE Composite and Clough Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Clough Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.32 times less return on investment than Clough Global. But when comparing it to its historical volatility, NYSE Composite is 1.33 times less risky than Clough Global. It trades about 0.08 of its potential returns per unit of risk. Clough Global Ef is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Clough Global Ef on September 1, 2024 and sell it today you would earn a total of 188.00 from holding Clough Global Ef or generate 37.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Clough Global Ef
Performance |
| Timeline |
NYSE Composite and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Clough Global Ef
Pair trading matchups for Clough Global
Pair Trading with NYSE Composite and Clough Global
The main advantage of trading using opposite NYSE Composite and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Clough Global vs. Allianzgi Convertible Income | Clough Global vs. MFS Investment Grade | Clough Global vs. Eaton Vance Senior | Clough Global vs. Stone Harbor Emerging |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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