Correlation Between Doubleline Income and Clough Global

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

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

Diversification Opportunities for Doubleline Income and Clough Global

0.12

Correlation Coefficient

Doubleline Income  Clough Global

Average diversification

The 3 months correlation between Doubleline and Clough is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Income Solutions 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 Doubleline Income 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 Doubleline Income Solutions 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 Doubleline Income i.e., Doubleline Income and Clough Global go up and down completely randomly.

Pair Corralation between Doubleline Income and Clough Global

Considering the 90-day investment horizon Doubleline Income is expected to generate 2.05 times less return on investment than Clough Global. But when comparing it to its historical volatility, Doubleline Income Solutions is 1.15 times less risky than Clough Global. It trades about 0.06 of its potential returns per unit of risk. Clough Global Ef is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  654.00  in Clough Global Ef on September 3, 2024 and sell it today you would earn a total of  32.00  from holding Clough Global Ef or generate 4.89% return on investment over 90 days.

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

Doubleline Income Solutions  vs.  Clough Global Ef

Doubleline Income

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Income Solutions are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent basic indicators, Doubleline Income is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Clough Global Ef

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clough Global Ef are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. 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 Doubleline Income and Clough Global

The main advantage of trading using opposite Doubleline Income and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Income 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 Doubleline Income Solutions 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.