Correlation Between Sixt Leasing and Accenture Plc

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

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

Diversification Opportunities for Sixt Leasing and Accenture Plc

-0.53

Correlation Coefficient

Sixt Leasing  Accenture Plc

Excellent diversification

The 3 months correlation between Sixt and Accenture is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and Accenture Plc go up and down completely randomly.

Pair Corralation between Sixt Leasing and Accenture Plc

Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Accenture Plc. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.31 times less risky than Accenture Plc. The stock trades about -0.11 of its potential returns per unit of risk. The Accenture plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  33,900  in Accenture plc on October 6, 2024 and sell it today you would earn a total of  450.00  from holding Accenture plc or generate 1.33% return on investment over 90 days.

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

Sixt Leasing SE  vs.  Accenture plc

Sixt Leasing SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sixt Leasing SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Accenture plc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Accenture plc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Accenture Plc may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Sixt Leasing and Accenture Plc

The main advantage of trading using opposite Sixt Leasing and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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 Sixt Leasing SE 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..