Correlation Between Concentrix and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both Concentrix and Accenture Plc 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 Concentrix and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentrix and Accenture plc, you can compare the effects of market volatilities on Concentrix and Accenture Plc 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 Concentrix with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentrix and Accenture Plc.
Diversification Opportunities for Concentrix and Accenture Plc
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Concentrix and Accenture is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Concentrix 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 Concentrix are associated (or correlated) with Accenture Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accenture plc has no effect on the direction of Concentrix i.e., Concentrix and Accenture Plc go up and down completely randomly.
Pair Corralation between Concentrix and Accenture Plc
Given the investment horizon of 90 days Concentrix is expected to under-perform the Accenture Plc. In addition to that, Concentrix is 2.48 times more volatile than Accenture plc. It trades about -0.24 of its total potential returns per unit of risk. Accenture plc is currently generating about -0.42 per unit of volatility. If you would invest 33,786 in Accenture plc on January 30, 2024 and sell it today you would lose (2,985) from holding Accenture plc or give up 8.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Concentrix vs. Accenture plc
Performance |
Timeline |
Concentrix |
Accenture plc |
Concentrix and Accenture Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Concentrix and Accenture Plc
The main advantage of trading using opposite Concentrix and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentrix position performs unexpectedly, Accenture Plc 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 Accenture Plc will offset losses from the drop in Accenture Plc's long position.The idea behind Concentrix and Accenture plc 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.Accenture Plc vs. Home Bancorp | Accenture Plc vs. Heritage Financial | Accenture Plc vs. CRA International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |