Correlation Between Nayax and Accenture Plc

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

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

Diversification Opportunities for Nayax and Accenture Plc

-0.12

Correlation Coefficient

Nayax  Accenture Plc

Good diversification

The 3 months correlation between Nayax and Accenture is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nayax and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Nayax 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 Nayax 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 Nayax i.e., Nayax and Accenture Plc go up and down completely randomly.

Pair Corralation between Nayax and Accenture Plc

Given the investment horizon of 90 days Nayax is expected to generate 2.31 times more return on investment than Accenture Plc. However, Nayax is 2.31 times more volatile than Accenture plc. It trades about 0.05 of its potential returns per unit of risk. Accenture plc is currently generating about 0.03 per unit of risk. If you would invest  1,980  in Nayax on September 28, 2024 and sell it today you would earn a total of  820.00  from holding Nayax or generate 41.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.4%
Values	Daily Returns

Nayax  vs.  Accenture plc

Nayax

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nayax are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Nayax showed solid returns over the last few months and may actually be approaching a breakup point.

Accenture plc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Accenture plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Accenture Plc is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nayax and Accenture Plc

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