Correlation Between Accenture Plc and ATMA Participaes
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and ATMA Participaes 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 ATMA Participaes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and ATMA Participaes SA, you can compare the effects of market volatilities on Accenture Plc and ATMA Participaes 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 ATMA Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and ATMA Participaes.
Diversification Opportunities for Accenture Plc and ATMA Participaes
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accenture and ATMA is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and ATMA Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participaes 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 ATMA Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participaes has no effect on the direction of Accenture Plc i.e., Accenture Plc and ATMA Participaes go up and down completely randomly.
Pair Corralation between Accenture Plc and ATMA Participaes
Assuming the 90 days trading horizon Accenture plc is expected to generate 0.36 times more return on investment than ATMA Participaes. However, Accenture plc is 2.77 times less risky than ATMA Participaes. It trades about 0.18 of its potential returns per unit of risk. ATMA Participaes SA is currently generating about -0.15 per unit of risk. If you would invest 209,727 in Accenture plc on September 26, 2024 and sell it today you would earn a total of 12,901 from holding Accenture plc or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. ATMA Participaes SA
Performance |
| Timeline |
| Accenture plc |
| ATMA Participaes |
Accenture Plc and ATMA Participaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and ATMA Participaes
The main advantage of trading using opposite Accenture Plc and ATMA Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, ATMA Participaes 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 ATMA Participaes will offset losses from the drop in ATMA Participaes' long position.| Accenture Plc vs. International Business Machines | Accenture Plc vs. Infosys Limited | Accenture Plc vs. Fiserv Inc | Accenture Plc vs. Fidelity National Information |
| ATMA Participaes vs. Copart Inc | ATMA Participaes vs. Infracommerce CXaaS SA | ATMA Participaes vs. OceanPact Servios Martimos | ATMA Participaes vs. Accenture plc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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