Correlation Between Aberdeen Standard and Clough Global

Can any of the company-specific risk be diversified away by investing in both Aberdeen Standard 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 Aberdeen Standard and Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aberdeen Standard Global and Clough Global Ef, you can compare the effects of market volatilities on Aberdeen Standard 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 Aberdeen Standard with a short position of Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Standard and Clough Global.

Diversification Opportunities for Aberdeen Standard and Clough Global

-0.18

Correlation Coefficient

Aberdeen Standard  Clough Global

Good diversification

The 3 months correlation between Aberdeen and Clough is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Standard Global 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 Aberdeen Standard 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 Aberdeen Standard Global 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 Aberdeen Standard i.e., Aberdeen Standard and Clough Global go up and down completely randomly.

Pair Corralation between Aberdeen Standard and Clough Global

Given the investment horizon of 90 days Aberdeen Standard Global is expected to generate 0.86 times more return on investment than Clough Global. However, Aberdeen Standard Global is 1.16 times less risky than Clough Global. It trades about 0.13 of its potential returns per unit of risk. Clough Global Ef is currently generating about -0.01 per unit of risk. If you would invest  1,721  in Aberdeen Standard Global on December 28, 2024 and sell it today you would earn a total of  110.00  from holding Aberdeen Standard Global or generate 6.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aberdeen Standard Global  vs.  Clough Global Ef

Aberdeen Standard Global

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aberdeen Standard Global are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly fragile technical and fundamental indicators, Aberdeen Standard may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Clough Global Ef

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clough Global Ef has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively invariable essential indicators, Clough Global is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Aberdeen Standard and Clough Global

The main advantage of trading using opposite Aberdeen Standard and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Standard 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.

The idea behind Aberdeen Standard Global and Clough Global Ef pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.