Correlation Between Accenture Plc and 9F

Can any of the company-specific risk be diversified away by investing in both Accenture Plc and 9F 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 9F into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Accenture plc and 9F Inc, you can compare the effects of market volatilities on Accenture Plc and 9F 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 9F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and 9F.

Diversification Opportunities for Accenture Plc and 9F

-0.11

Correlation Coefficient

Accenture Plc  9F

Good diversification

The 3 months correlation between Accenture and 9F is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and 9F Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 9F Inc 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 9F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 9F Inc has no effect on the direction of Accenture Plc i.e., Accenture Plc and 9F go up and down completely randomly.

Pair Corralation between Accenture Plc and 9F

Considering the 90-day investment horizon Accenture plc is expected to under-perform the 9F. But the stock apears to be less risky and, when comparing its historical volatility, Accenture plc is 2.39 times less risky than 9F. The stock trades about -0.02 of its potential returns per unit of risk. The 9F Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  151.00  in 9F Inc on December 2, 2024 and sell it today you would lose (1.00) from holding 9F Inc or give up 0.66% of portfolio value over 90 days.

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

Accenture plc  vs.  9F Inc

Accenture plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accenture plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Accenture Plc is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

9F Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 9F Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, 9F is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Accenture Plc and 9F

The main advantage of trading using opposite Accenture Plc and 9F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, 9F 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 9F will offset losses from the drop in 9F's long position.

The idea behind Accenture plc and 9F Inc 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.