Correlation Between Accenture Plc and TTEC Holdings
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and TTEC Holdings 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 TTEC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and TTEC Holdings, you can compare the effects of market volatilities on Accenture Plc and TTEC Holdings 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 TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and TTEC Holdings.
Diversification Opportunities for Accenture Plc and TTEC Holdings
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accenture and TTEC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings 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 TTEC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTEC Holdings has no effect on the direction of Accenture Plc i.e., Accenture Plc and TTEC Holdings go up and down completely randomly.
Pair Corralation between Accenture Plc and TTEC Holdings
Considering the 90-day investment horizon Accenture plc is expected to generate 0.4 times more return on investment than TTEC Holdings. However, Accenture plc is 2.52 times less risky than TTEC Holdings. It trades about -0.06 of its potential returns per unit of risk. TTEC Holdings is currently generating about -0.11 per unit of risk. If you would invest 37,063 in Accenture plc on August 24, 2024 and sell it today you would lose (958.00) from holding Accenture plc or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. TTEC Holdings
Performance |
| Timeline |
| Accenture plc |
| TTEC Holdings |
Accenture Plc and TTEC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and TTEC Holdings
The main advantage of trading using opposite Accenture Plc and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, TTEC Holdings 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 TTEC Holdings will offset losses from the drop in TTEC Holdings' long position.| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
| TTEC Holdings vs. ExlService Holdings | TTEC Holdings vs. Genpact Limited | TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. Science Applications International |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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