Clough Global Allocation Fund Volatility
| GLV Fund | USD 5.75 0.01 0.17% |
At this stage we consider Clough Fund to be not too volatile. Clough Global Allocation secures Sharpe Ratio (or Efficiency) of 0.0521, which signifies that the fund had a 0.0521% return per unit of risk over the last 3 months. We have found thirty technical indicators for Clough Global Allocation, which you can use to evaluate the volatility of the entity. Please confirm Clough Global's Risk Adjusted Performance of 0.0349, mean deviation of 0.6105, and Downside Deviation of 0.927 to double-check if the risk estimate we provide is consistent with the expected return of 0.0458%. Key indicators related to Clough Global's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Clough Global Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Clough daily returns, and it is calculated using variance and standard deviation. We also use Clough's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Clough Global volatility.
Clough |
Downward market volatility can be a perfect environment for investors who play the long game with Clough Global. They may decide to buy additional shares of Clough Global at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Clough Global Market Sensitivity And Downside Risk
Clough Global's beta coefficient measures the volatility of Clough fund compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Clough fund's returns against your selected market. In other words, Clough Global's beta of 0.24 provides an investor with an approximation of how much risk Clough Global fund can potentially add to one of your existing portfolios. Clough Global Allocation has low volatility with Treynor Ratio of 0.12, Maximum Drawdown of 4.91 and kurtosis of 2.55. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Clough Global's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Clough Global's fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Clough Global Allocation Demand TrendCheck current 90 days Clough Global correlation with market (Dow Jones Industrial)Clough Beta |
Clough standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.88 |
It is essential to understand the difference between upside risk (as represented by Clough Global's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Clough Global's daily returns or price. Since the actual investment returns on holding a position in clough fund tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Clough Global.
Clough Global Allocation Fund Volatility Analysis
Volatility refers to the frequency at which Clough Global fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Clough Global's price changes. Investors will then calculate the volatility of Clough Global's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A fund with relatively stable price changes has low volatility. A highly volatile fund is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Clough Global's volatility:
Historical Volatility
This type of fund volatility measures Clough Global's fluctuations based on previous trends. It's commonly used to predict Clough Global's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Clough Global's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Clough Global's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Clough Global Allocation Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Clough Global Projected Return Density Against Market
Considering the 90-day investment horizon Clough Global has a beta of 0.2449 . This usually indicates as returns on the market go up, Clough Global average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Clough Global Allocation will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Clough Global or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Clough Global's price will be affected by overall fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Clough fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Clough Global Allocation has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Clough Global Price Volatility?
Several factors can influence a fund's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Clough Global Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Clough Global is 1920.38. The daily returns are distributed with a variance of 0.77 and standard deviation of 0.88. The mean deviation of Clough Global Allocation is currently at 0.61. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.0029 | |
β | Beta against Dow Jones | 0.24 | |
σ | Overall volatility | 0.88 | |
Ir | Information ratio | -0.11 |
Clough Global Fund Return Volatility
Clough Global historical daily return volatility represents how much of Clough Global fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.8787% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Clough Global Volatility
Volatility is a rate at which the price of Clough Global or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Clough Global may increase or decrease. In other words, similar to Clough's beta indicator, it measures the risk of Clough Global and helps estimate the fluctuations that may happen in a short period of time. So if prices of Clough Global fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Clough Global Dividend and Income Fund is a closed ended balanced mutual fund launched and managed by Clough Capital Partners L.P. The fund primarily invests in the public equity and fixed income markets across the globe. It seeks to invest in securities of companies operating across diversified sectors. For its fixed income portion, it invests in corporate and sovereign debt. It invest in fixed income securities having a maturity ranging from 30 days to over 30 years. The fund invests in non-U.S. markets primarily through liquid securities, including depositary receipts. Its equity portion primarily invests in stocks of small-cap and mid-cap companies. The fund employs a fundamental analysis with a bottom-up stock picking approach to make its investments. It primarily employs a theme-oriented investment approach which emphasizes on industry consolidation, technological change, an emerging shortage of a product or raw material which derives from a period of under-investment, and changes in government regulation or major economic or investment cycles. The funds research process includes identifying shortages, global geographic growth opportunities, and unique global credit market opportunities. The fund was formerly known as Clough Global Allocation Fund. Clough Global Dividend and Income Fund was formed on April 27, 2004 and is domiciled in the United States.
Clough Global's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Clough Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Clough Global's price varies over time.
3 ways to utilize Clough Global's volatility to invest better
Higher Clough Global's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Clough Global Allocation fund is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Clough Global Allocation fund volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Clough Global Allocation investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Clough Global's fund can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Clough Global's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Clough Global Investment Opportunity
Clough Global Allocation has a volatility of 0.88 and is 1.17 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Clough Global Allocation is lower than 7 percent of all global equities and portfolios over the last 90 days. You can use Clough Global Allocation to enhance the returns of your portfolios. The fund experiences a normal upward fluctuation. Check odds of Clough Global to be traded at $6.04 in 90 days.Modest diversification
The correlation between Clough Global Allocation and DJI is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Allocation and DJI in the same portfolio, assuming nothing else is changed.
Clough Global Additional Risk Indicators
The analysis of Clough Global's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Clough Global's investment and either accepting that risk or mitigating it. Along with some common measures of Clough Global fund's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0349 | |||
| Market Risk Adjusted Performance | 0.1258 | |||
| Mean Deviation | 0.6105 | |||
| Semi Deviation | 0.7819 | |||
| Downside Deviation | 0.927 | |||
| Coefficient Of Variation | 2265.63 | |||
| Standard Deviation | 0.8692 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Clough Global Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
| Visa vs. Clough Global | ||
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| GM vs. Clough Global | ||
| Ford vs. Clough Global | ||
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| Bank of America vs. Clough Global |
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Clough Global as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Clough Global's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Clough Global's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Clough Global Allocation.
Other Information on Investing in Clough Fund
Clough Global financial ratios help investors to determine whether Clough Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Clough with respect to the benefits of owning Clough Global security.
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