Correlation Between Accenture Plc and Strer SE
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Strer SE 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 Strer SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Strer SE Co, you can compare the effects of market volatilities on Accenture Plc and Strer SE 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 Strer SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Strer SE.
Diversification Opportunities for Accenture Plc and Strer SE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accenture and Strer is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strer SE 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 Strer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strer SE has no effect on the direction of Accenture Plc i.e., Accenture Plc and Strer SE go up and down completely randomly.
Pair Corralation between Accenture Plc and Strer SE
Assuming the 90 days horizon Accenture plc is expected to generate 1.4 times more return on investment than Strer SE. However, Accenture Plc is 1.4 times more volatile than Strer SE Co. It trades about 0.02 of its potential returns per unit of risk. Strer SE Co is currently generating about -0.02 per unit of risk. If you would invest 34,450 in Accenture plc on September 25, 2024 and sell it today you would earn a total of 115.00 from holding Accenture plc or generate 0.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Accenture plc vs. Strer SE Co
Performance |
Timeline |
Accenture plc |
Strer SE |
Accenture Plc and Strer SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accenture Plc and Strer SE
The main advantage of trading using opposite Accenture Plc and Strer SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Strer SE 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 Strer SE will offset losses from the drop in Strer SE's long position.Accenture Plc vs. International Business Machines | Accenture Plc vs. Infosys Limited | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. AMADEUS IT GRP |
Strer SE vs. Publicis Groupe SA | Strer SE vs. Omnicom Group | Strer SE vs. WPP PLC | Strer SE vs. WPP PLC ADR |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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