Correlation Between MFS Special and Clough Global

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

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

Diversification Opportunities for MFS Special and Clough Global

0.0

Correlation Coefficient

MFS Special  Clough Global

Pay attention - limited upside

The 3 months correlation between MFS and Clough is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MFS Special Value 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 MFS Special 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 MFS Special Value 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 MFS Special i.e., MFS Special and Clough Global go up and down completely randomly.

Pair Corralation between MFS Special and Clough Global

If you would invest  530.00  in Clough Global Allocation on December 26, 2024 and sell it today you would earn a total of  24.00  from holding Clough Global Allocation or generate 4.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

MFS Special Value  vs.  Clough Global Allocation

MFS Special Value

Risk-Adjusted Performance

Very Weak

Over the last 90 days MFS Special Value has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, MFS Special is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Clough Global Allocation

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clough Global Allocation are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable essential indicators, Clough Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with MFS Special and Clough Global

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

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.