Correlation Between Firefly Neuroscience, and Accenture Plc

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

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

Diversification Opportunities for Firefly Neuroscience, and Accenture Plc

0.29

Correlation Coefficient

Firefly Neuroscience,  Accenture Plc

Modest diversification

The 3 months correlation between Firefly and Accenture is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Firefly Neuroscience, and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Firefly Neuroscience, 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 Firefly Neuroscience, 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 Firefly Neuroscience, i.e., Firefly Neuroscience, and Accenture Plc go up and down completely randomly.

Pair Corralation between Firefly Neuroscience, and Accenture Plc

Given the investment horizon of 90 days Firefly Neuroscience, is expected to generate 16.02 times more return on investment than Accenture Plc. However, Firefly Neuroscience, is 16.02 times more volatile than Accenture plc. It trades about 0.11 of its potential returns per unit of risk. Accenture plc is currently generating about -0.13 per unit of risk. If you would invest  265.00  in Firefly Neuroscience, on December 30, 2024 and sell it today you would earn a total of  146.00  from holding Firefly Neuroscience, or generate 55.09% return on investment over 90 days.

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

Firefly Neuroscience,  vs.  Accenture plc

Firefly Neuroscience,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Firefly Neuroscience, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Firefly Neuroscience, reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Firefly Neuroscience, and Accenture Plc

The main advantage of trading using opposite Firefly Neuroscience, and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firefly Neuroscience, 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 Firefly Neuroscience, 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.