Correlation Between Clough Global and The Arbitrage
Can any of the company-specific risk be diversified away by investing in both Clough Global and The Arbitrage 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 The Arbitrage 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 The Arbitrage Event Driven, you can compare the effects of market volatilities on Clough Global and The Arbitrage 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 The Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and The Arbitrage.
Diversification Opportunities for Clough Global and The Arbitrage
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clough and The is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Opportunities and The Arbitrage Event Driven in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbitrage Event 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 The Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbitrage Event has no effect on the direction of Clough Global i.e., Clough Global and The Arbitrage go up and down completely randomly.
Pair Corralation between Clough Global and The Arbitrage
Considering the 90-day investment horizon Clough Global Opportunities is expected to generate 5.91 times more return on investment than The Arbitrage. However, Clough Global is 5.91 times more volatile than The Arbitrage Event Driven. It trades about 0.21 of its potential returns per unit of risk. The Arbitrage Event Driven is currently generating about 0.46 per unit of risk. If you would invest 517.00 in Clough Global Opportunities on June 6, 2025 and sell it today you would earn a total of 39.00 from holding Clough Global Opportunities or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clough Global Opportunities vs. The Arbitrage Event Driven
Performance |
| Timeline |
| Clough Global Opport |
| Arbitrage Event |
Clough Global and The Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clough Global and The Arbitrage
The main advantage of trading using opposite Clough Global and The Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global position performs unexpectedly, The Arbitrage 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 The Arbitrage will offset losses from the drop in The Arbitrage's long position.| Clough Global vs. Clough Global Ef | Clough Global vs. Stone Harbor Emerging | Clough Global vs. RiverNorthDoubleLine Strategic Opportunity | Clough Global vs. Franklin Templeton Limited |
| The Arbitrage vs. Aston Montag Caldwell | The Arbitrage vs. Auer Growth Fund | The Arbitrage vs. L Abbett Growth | The Arbitrage vs. Eagle Growth Income |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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