Correlation Between MFS Special and Clough Global

Specify exactly 2 symbols:
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

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  442.00  in Clough Global Allocation on December 2, 2024 and sell it today you would earn a total of  111.00  from holding Clough Global Allocation or generate 25.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

MFS Special Value  vs.  Clough Global Allocation

 Performance 
       Timeline  
MFS Special Value 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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

Very Weak

 
Weak
 
Strong
Over the last 90 days Clough Global Allocation has generated negative risk-adjusted returns adding no value to fund investors. 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.

MFS Special and Clough Global Volatility Contrast

   Predicted Return Density   
       Returns  

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets