Correlation Between Aesapar Fundo and Accenture Plc

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

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

Diversification Opportunities for Aesapar Fundo and Accenture Plc

0.2

Correlation Coefficient

Aesapar Fundo  Accenture Plc

Modest diversification

The 3 months correlation between Aesapar and Accenture is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aesapar Fundo de and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Aesapar Fundo 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 Aesapar Fundo de 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 Aesapar Fundo i.e., Aesapar Fundo and Accenture Plc go up and down completely randomly.

Pair Corralation between Aesapar Fundo and Accenture Plc

Assuming the 90 days trading horizon Aesapar Fundo de is expected to under-perform the Accenture Plc. In addition to that, Aesapar Fundo is 1.03 times more volatile than Accenture plc. It trades about -0.13 of its total potential returns per unit of risk. Accenture plc is currently generating about 0.1 per unit of volatility. If you would invest  207,683  in Accenture plc on November 20, 2024 and sell it today you would earn a total of  13,236  from holding Accenture plc or generate 6.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	79.66%
Values	Daily Returns

Aesapar Fundo de  vs.  Accenture plc

Aesapar Fundo de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aesapar Fundo de has generated negative risk-adjusted returns adding no value to fund investors. Despite weak performance in the last few months, the Fund's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Accenture plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Accenture plc are ranked lower than 7 (%) 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 March 2025.

Pair Trading with Aesapar Fundo and Accenture Plc

The main advantage of trading using opposite Aesapar Fundo and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesapar Fundo 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 Aesapar Fundo de 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.