Correlation Between Clough Global and Calamos Convertible

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

By analyzing existing cross correlation between Clough Global Ef and Calamos Convertible Opportunities, you can compare the effects of market volatilities on Clough Global and Calamos Convertible 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 Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and Calamos Convertible.

Diversification Opportunities for Clough Global and Calamos Convertible

0.61

Correlation Coefficient

Clough Global  Calamos Convertible

Poor diversification

The 3 months correlation between Clough and Calamos is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Ef and Calamos Convertible Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible 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 Ef are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Clough Global i.e., Clough Global and Calamos Convertible go up and down completely randomly.

Pair Corralation between Clough Global and Calamos Convertible

Considering the 90-day investment horizon Clough Global is expected to generate 1.4 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Clough Global Ef is 1.32 times less risky than Calamos Convertible. It trades about 0.11 of its potential returns per unit of risk. Calamos Convertible Opportunities is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,134  in Calamos Convertible Opportunities on September 18, 2024 and sell it today you would earn a total of  75.00  from holding Calamos Convertible Opportunities or generate 6.61% return on investment over 90 days.

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

Clough Global Ef  vs.  Calamos Convertible Opportunit

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.

Calamos Convertible

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Convertible Opportunities are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly fragile technical indicators, Calamos Convertible may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Clough Global and Calamos Convertible

The main advantage of trading using opposite Clough Global and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough Global position performs unexpectedly, Calamos Convertible 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.

The idea behind Clough Global Ef and Calamos Convertible Opportunities 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.