Correlation Between Accenture Plc and ASGN
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and ASGN 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 ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and ASGN Inc, you can compare the effects of market volatilities on Accenture Plc and ASGN 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 ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and ASGN.
Diversification Opportunities for Accenture Plc and ASGN
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Accenture and ASGN is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc 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 ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Accenture Plc i.e., Accenture Plc and ASGN go up and down completely randomly.
Pair Corralation between Accenture Plc and ASGN
Considering the 90-day investment horizon Accenture plc is expected to generate 0.78 times more return on investment than ASGN. However, Accenture plc is 1.28 times less risky than ASGN. It trades about 0.04 of its potential returns per unit of risk. ASGN Inc is currently generating about 0.02 per unit of risk. If you would invest 27,774 in Accenture plc on August 28, 2024 and sell it today you would earn a total of 8,355 from holding Accenture plc or generate 30.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. ASGN Inc
Performance |
| Timeline |
| Accenture plc |
| ASGN Inc |
Accenture Plc and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and ASGN
The main advantage of trading using opposite Accenture Plc and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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