Correlation Between Clough Global and Pimco New
Can any of the company-specific risk be diversified away by investing in both Clough Global and Pimco New 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 Clough Global and Pimco New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clough Global Opportunities and Pimco New York, you can compare the effects of market volatilities on Clough Global and Pimco New 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 Clough Global with a short position of Pimco New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and Pimco New.
Diversification Opportunities for Clough Global and Pimco New
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clough and Pimco is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Opportunities and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco New York and Clough Global 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 Clough Global Opportunities are associated (or correlated) with Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of Clough Global i.e., Clough Global and Pimco New go up and down completely randomly.
Pair Corralation between Clough Global and Pimco New
Considering the 90-day investment horizon Clough Global Opportunities is expected to generate 1.13 times more return on investment than Pimco New. However, Clough Global is 1.13 times more volatile than Pimco New York. It trades about 0.14 of its potential returns per unit of risk. Pimco New York is currently generating about 0.03 per unit of risk. If you would invest 518.00 in Clough Global Opportunities on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Clough Global Opportunities or generate 2.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Clough Global Opportunities vs. Pimco New York
Performance |
Timeline |
Clough Global Opport |
Pimco New York |
Clough Global and Pimco New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clough Global and Pimco New
The main advantage of trading using opposite Clough Global and Pimco New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global position performs unexpectedly, Pimco New 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 Pimco New will offset losses from the drop in Pimco New's long position.Clough Global vs. Clough Global Allocation | Clough Global vs. Voya Asia Pacific | Clough Global vs. Aberdeen Global IF | Clough Global vs. RiverNorthDoubleLine Strategic Opportunity |
Pimco New vs. Pimco New York | Pimco New vs. Pimco California Municipal | Pimco New vs. Pimco Municipal Income | Pimco New vs. Pimco California Municipal |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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