Correlation Between Accenture Plc and AstraZeneca PLC
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and AstraZeneca 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 Accenture Plc and AstraZeneca PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and AstraZeneca PLC, you can compare the effects of market volatilities on Accenture Plc and AstraZeneca 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 Accenture Plc with a short position of AstraZeneca PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and AstraZeneca PLC.
Diversification Opportunities for Accenture Plc and AstraZeneca PLC
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accenture and AstraZeneca is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and AstraZeneca PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstraZeneca PLC 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 AstraZeneca PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstraZeneca PLC has no effect on the direction of Accenture Plc i.e., Accenture Plc and AstraZeneca PLC go up and down completely randomly.
Pair Corralation between Accenture Plc and AstraZeneca PLC
Considering the 90-day investment horizon Accenture plc is expected to under-perform the AstraZeneca PLC. But the stock apears to be less risky and, when comparing its historical volatility, Accenture plc is 1.45 times less risky than AstraZeneca PLC. The stock trades about 0.0 of its potential returns per unit of risk. The AstraZeneca PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12,584 in AstraZeneca PLC on August 27, 2024 and sell it today you would earn a total of 809.00 from holding AstraZeneca PLC or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. AstraZeneca PLC
Performance |
| Timeline |
| Accenture plc |
| AstraZeneca PLC |
Accenture Plc and AstraZeneca PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and AstraZeneca PLC
The main advantage of trading using opposite Accenture Plc and AstraZeneca PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, AstraZeneca 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 AstraZeneca PLC will offset losses from the drop in AstraZeneca PLC's long position.| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
| AstraZeneca PLC vs. Sanofi ADR | AstraZeneca PLC vs. Bristol Myers Squibb | AstraZeneca PLC vs. AstraZeneca PLC ADR | AstraZeneca PLC vs. Gilead Sciences |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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