Correlation Between Abrdn Asia and Clairvest

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

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

Diversification Opportunities for Abrdn Asia and Clairvest

0.64

Correlation Coefficient

Abrdn Asia  Clairvest

Poor diversification

The 3 months correlation between Abrdn and Clairvest is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Asia Pacific and Clairvest Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clairvest Group and Abrdn Asia 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 abrdn Asia Pacific are associated (or correlated) with Clairvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clairvest Group has no effect on the direction of Abrdn Asia i.e., Abrdn Asia and Clairvest go up and down completely randomly.

Pair Corralation between Abrdn Asia and Clairvest

Assuming the 90 days trading horizon Abrdn Asia is expected to generate 1.97 times less return on investment than Clairvest. But when comparing it to its historical volatility, abrdn Asia Pacific is 1.77 times less risky than Clairvest. It trades about 0.17 of its potential returns per unit of risk. Clairvest Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  6,524  in Clairvest Group on April 20, 2025 and sell it today you would earn a total of  1,076  from holding Clairvest Group or generate 16.49% return on investment over 90 days.

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

abrdn Asia Pacific  vs.  Clairvest Group

abrdn Asia Pacific

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Asia Pacific are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Abrdn Asia may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Clairvest Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Clairvest Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Clairvest displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Abrdn Asia and Clairvest

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

The idea behind abrdn Asia Pacific and Clairvest Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.