Correlation Between Accenture Plc and Computer Task
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Computer Task 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 Accenture Plc and Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Computer Task Group, you can compare the effects of market volatilities on Accenture Plc and Computer Task 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 Accenture Plc with a short position of Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Computer Task.
Diversification Opportunities for Accenture Plc and Computer Task
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accenture and Computer is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task Group and Accenture Plc 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 Accenture plc are associated (or correlated) with Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of Accenture Plc i.e., Accenture Plc and Computer Task go up and down completely randomly.
Pair Corralation between Accenture Plc and Computer Task
Considering the 90-day investment horizon Accenture Plc is expected to generate 3.6 times less return on investment than Computer Task. But when comparing it to its historical volatility, Accenture plc is 1.78 times less risky than Computer Task. It trades about 0.06 of its potential returns per unit of risk. Computer Task Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 693.00 in Computer Task Group on January 20, 2024 and sell it today you would earn a total of 357.00 from holding Computer Task Group or generate 51.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 65.73% |
| Values | Daily Returns |
Accenture plc vs. Computer Task Group
Performance |
| Timeline |
| Accenture plc |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Accenture Plc and Computer Task Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and Computer Task
The main advantage of trading using opposite Accenture Plc and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.| Accenture Plc vs. Information Services Group | Accenture Plc vs. Home Bancorp | Accenture Plc vs. CRA International | Accenture Plc vs. Aquagold International |
| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Clarivate Plc | Computer Task vs. Nayax |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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