Correlation Between Accenture Plc and Halliburton

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

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

Diversification Opportunities for Accenture Plc and Halliburton

0.23

Correlation Coefficient

Accenture Plc  Halliburton

Modest diversification

The 3 months correlation between Accenture and Halliburton is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Accenture Plc i.e., Accenture Plc and Halliburton go up and down completely randomly.

Pair Corralation between Accenture Plc and Halliburton

Assuming the 90 days trading horizon Accenture plc is expected to generate 0.78 times more return on investment than Halliburton. However, Accenture plc is 1.28 times less risky than Halliburton. It trades about 0.07 of its potential returns per unit of risk. Halliburton is currently generating about 0.02 per unit of risk. If you would invest  170,056  in Accenture plc on October 5, 2024 and sell it today you would earn a total of  48,637  from holding Accenture plc or generate 28.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.12%
Values	Daily Returns

Accenture plc  vs.  Halliburton

Accenture plc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Accenture plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Accenture Plc may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Halliburton

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Halliburton are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain essential indicators, Halliburton may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Accenture Plc and Halliburton

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

The idea behind Accenture plc and Halliburton 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.