Correlation Between Boeing and Clough Global

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

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

Diversification Opportunities for Boeing and Clough Global

-0.55

Correlation Coefficient

Boeing  Clough Global

Excellent diversification

The 3 months correlation between Boeing and Clough is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing 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 Boeing 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 The Boeing 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 Boeing i.e., Boeing and Clough Global go up and down completely randomly.

Pair Corralation between Boeing and Clough Global

Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the Clough Global. In addition to that, Boeing is 2.88 times more volatile than Clough Global Ef. It trades about -0.02 of its total potential returns per unit of risk. Clough Global Ef is currently generating about 0.11 per unit of volatility. If you would invest  654.00  in Clough Global Ef on September 3, 2024 and sell it today you would earn a total of  32.00  from holding Clough Global Ef or generate 4.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

The Boeing  vs.  Clough Global Ef

Boeing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Boeing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Boeing is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Clough Global Ef

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clough Global Ef are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable essential indicators, Clough Global is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Boeing and Clough Global

The main advantage of trading using opposite Boeing and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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 The Boeing 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.