Correlation Between Accenture Plc and Thoughtworks Holding
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Thoughtworks Holding 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 Thoughtworks Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Thoughtworks Holding, you can compare the effects of market volatilities on Accenture Plc and Thoughtworks Holding 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 Thoughtworks Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Thoughtworks Holding.
Diversification Opportunities for Accenture Plc and Thoughtworks Holding
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accenture and Thoughtworks is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Thoughtworks Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoughtworks Holding 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 Thoughtworks Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoughtworks Holding has no effect on the direction of Accenture Plc i.e., Accenture Plc and Thoughtworks Holding go up and down completely randomly.
Pair Corralation between Accenture Plc and Thoughtworks Holding
Considering the 90-day investment horizon Accenture plc is expected to generate 0.38 times more return on investment than Thoughtworks Holding. However, Accenture plc is 2.64 times less risky than Thoughtworks Holding. It trades about 0.04 of its potential returns per unit of risk. Thoughtworks Holding is currently generating about -0.02 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 Together |
| Strength | Significant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Accenture plc vs. Thoughtworks Holding
Performance |
| Timeline |
| Accenture plc |
| Thoughtworks Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Accenture Plc and Thoughtworks Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and Thoughtworks Holding
The main advantage of trading using opposite Accenture Plc and Thoughtworks Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Thoughtworks Holding 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 Thoughtworks Holding will offset losses from the drop in Thoughtworks Holding's long position.| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
| Thoughtworks Holding vs. ExlService Holdings | Thoughtworks Holding vs. Genpact Limited | Thoughtworks Holding vs. ASGN Inc | Thoughtworks Holding vs. TTEC 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |