Correlation Between Clairvest and Abrdn Asia

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

By analyzing existing cross correlation between Clairvest Group and abrdn Asia Pacific, you can compare the effects of market volatilities on Clairvest and Abrdn Asia 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 Clairvest with a short position of Abrdn Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clairvest and Abrdn Asia.

Diversification Opportunities for Clairvest and Abrdn Asia

0.28

Correlation Coefficient

Clairvest  Abrdn Asia

Modest diversification

The 3 months correlation between Clairvest and Abrdn is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Clairvest Group and abrdn Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Asia Pacific and Clairvest 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 Clairvest Group are associated (or correlated) with Abrdn Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Asia Pacific has no effect on the direction of Clairvest i.e., Clairvest and Abrdn Asia go up and down completely randomly.

Pair Corralation between Clairvest and Abrdn Asia

Assuming the 90 days trading horizon Clairvest Group is expected to generate 2.07 times more return on investment than Abrdn Asia. However, Clairvest is 2.07 times more volatile than abrdn Asia Pacific. It trades about 0.11 of its potential returns per unit of risk. abrdn Asia Pacific is currently generating about 0.07 per unit of risk. If you would invest  6,919  in Clairvest Group on May 6, 2025 and sell it today you would earn a total of  581.00  from holding Clairvest Group or generate 8.4% return on investment over 90 days.

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

Clairvest Group  vs.  abrdn Asia Pacific

Clairvest Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clairvest Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Clairvest may actually be approaching a critical reversion point that can send shares even higher in September 2025.

abrdn Asia Pacific

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Asia Pacific are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Abrdn Asia is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Clairvest and Abrdn Asia

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

The idea behind Clairvest Group and abrdn Asia Pacific 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.