Correlation Between Accenture Plc and Kuehne +

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

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

Diversification Opportunities for Accenture Plc and Kuehne +

-0.53

Correlation Coefficient

Accenture Plc  Kuehne +

Excellent diversification

The 3 months correlation between Accenture and Kuehne is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Kuehne Nagel International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel Interna 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 Kuehne +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuehne Nagel Interna has no effect on the direction of Accenture Plc i.e., Accenture Plc and Kuehne + go up and down completely randomly.

Pair Corralation between Accenture Plc and Kuehne +

Considering the 90-day investment horizon Accenture plc is expected to under-perform the Kuehne +. But the stock apears to be less risky and, when comparing its historical volatility, Accenture plc is 1.07 times less risky than Kuehne +. The stock trades about -0.13 of its potential returns per unit of risk. The Kuehne Nagel International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  22,949  in Kuehne Nagel International on December 30, 2024 and sell it today you would earn a total of  1,176  from holding Kuehne Nagel International or generate 5.12% return on investment over 90 days.

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

Accenture plc  vs.  Kuehne Nagel International

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 weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Kuehne Nagel Interna

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kuehne Nagel International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Kuehne + is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Accenture Plc and Kuehne +

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

The idea behind Accenture plc and Kuehne Nagel International 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 Commodity Directory module to find actively traded commodities issued by global exchanges.