Correlation Between Special Opportunities and Clough Global
Can any of the company-specific risk be diversified away by investing in both Special Opportunities 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 Special Opportunities and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Special Opportunities Closed and Clough Global Allocation, you can compare the effects of market volatilities on Special Opportunities 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 Special Opportunities with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Special Opportunities and Clough Global.
Diversification Opportunities for Special Opportunities and Clough Global
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Special and Clough is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Special Opportunities Closed and Clough Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clough Global Allocation and Special Opportunities 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 Special Opportunities Closed 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 Allocation has no effect on the direction of Special Opportunities i.e., Special Opportunities and Clough Global go up and down completely randomly.
Pair Corralation between Special Opportunities and Clough Global
Considering the 90-day investment horizon Special Opportunities Closed is expected to generate 0.88 times more return on investment than Clough Global. However, Special Opportunities Closed is 1.14 times less risky than Clough Global. It trades about 0.45 of its potential returns per unit of risk. Clough Global Allocation is currently generating about 0.21 per unit of risk. If you would invest 1,460 in Special Opportunities Closed on November 2, 2024 and sell it today you would earn a total of 85.00 from holding Special Opportunities Closed or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Special Opportunities Closed vs. Clough Global Allocation
Performance |
| Timeline |
| Special Opportunities |
| Clough Global Allocation |
Special Opportunities and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Special Opportunities and Clough Global
The main advantage of trading using opposite Special Opportunities and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Special Opportunities 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.| Special Opportunities vs. Ares Dynamic Credit | Special Opportunities vs. Lazard Global Total | Special Opportunities vs. Principal Real Estate | Special Opportunities vs. Tortoise Capital Series |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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