Correlation Between Eaton Vance and Clough Global

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

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

Diversification Opportunities for Eaton Vance and Clough Global

0.8

Correlation Coefficient

Eaton Vance  Clough Global

Very poor diversification

The 3 months correlation between Eaton and Clough is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior 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 Eaton Vance 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 Eaton Vance Senior 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 Eaton Vance i.e., Eaton Vance and Clough Global go up and down completely randomly.

Pair Corralation between Eaton Vance and Clough Global

Considering the 90-day investment horizon Eaton Vance is expected to generate 61.11 times less return on investment than Clough Global. But when comparing it to its historical volatility, Eaton Vance Senior is 1.65 times less risky than Clough Global. It trades about 0.01 of its potential returns per unit of risk. Clough Global Ef is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  626.00  in Clough Global Ef on May 5, 2025 and sell it today you would earn a total of  92.00  from holding Clough Global Ef or generate 14.7% return on investment over 90 days.

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

Eaton Vance Senior  vs.  Clough Global Ef

Eaton Vance Senior

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Senior has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eaton Vance is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Clough Global Ef

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Clough Global Ef are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively abnormal essential indicators, Clough Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eaton Vance and Clough Global

The main advantage of trading using opposite Eaton Vance and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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 Eaton Vance Senior 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.