Correlation Between Accenture Plc and Cyxtera Technologies
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Cyxtera Technologies 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 Cyxtera Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Cyxtera Technologies, you can compare the effects of market volatilities on Accenture Plc and Cyxtera Technologies 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 Cyxtera Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Cyxtera Technologies.
Diversification Opportunities for Accenture Plc and Cyxtera Technologies
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accenture and Cyxtera is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Cyxtera Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxtera Technologies 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 Cyxtera Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxtera Technologies has no effect on the direction of Accenture Plc i.e., Accenture Plc and Cyxtera Technologies go up and down completely randomly.
Pair Corralation between Accenture Plc and Cyxtera Technologies
Considering the 90-day investment horizon Accenture plc is expected to generate 0.1 times more return on investment than Cyxtera Technologies. However, Accenture plc is 9.54 times less risky than Cyxtera Technologies. It trades about 0.04 of its potential returns per unit of risk. Cyxtera Technologies is currently generating about -0.1 per unit of risk. If you would invest 28,360 in Accenture plc on August 24, 2024 and sell it today you would earn a total of 7,745 from holding Accenture plc or generate 27.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Accenture plc vs. Cyxtera Technologies
Performance |
| Timeline |
| Accenture plc |
| Cyxtera Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Accenture Plc and Cyxtera Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and Cyxtera Technologies
The main advantage of trading using opposite Accenture Plc and Cyxtera Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Cyxtera Technologies 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 Cyxtera Technologies will offset losses from the drop in Cyxtera Technologies' long position.| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
| Cyxtera Technologies vs. 9F Inc | Cyxtera Technologies vs. FiscalNote Holdings | Cyxtera Technologies vs. ARB IOT Group | Cyxtera Technologies vs. BigBearai Holdings |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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