Correlation Between Accenture Plc and Hospital Mater
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Hospital Mater 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 Hospital Mater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Hospital Mater Dei, you can compare the effects of market volatilities on Accenture Plc and Hospital Mater 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 Hospital Mater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Hospital Mater.
Diversification Opportunities for Accenture Plc and Hospital Mater
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accenture and Hospital is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Hospital Mater Dei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Mater Dei 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 Hospital Mater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Mater Dei has no effect on the direction of Accenture Plc i.e., Accenture Plc and Hospital Mater go up and down completely randomly.
Pair Corralation between Accenture Plc and Hospital Mater
Assuming the 90 days trading horizon Accenture plc is expected to generate 0.71 times more return on investment than Hospital Mater. However, Accenture plc is 1.42 times less risky than Hospital Mater. It trades about 0.07 of its potential returns per unit of risk. Hospital Mater Dei is currently generating about -0.04 per unit of risk. If you would invest 136,924 in Accenture plc on September 26, 2024 and sell it today you would earn a total of 85,704 from holding Accenture plc or generate 62.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.0% |
| Values | Daily Returns |
Accenture plc vs. Hospital Mater Dei
Performance |
| Timeline |
| Accenture plc |
| Hospital Mater Dei |
Accenture Plc and Hospital Mater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and Hospital Mater
The main advantage of trading using opposite Accenture Plc and Hospital Mater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Hospital Mater 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 Hospital Mater will offset losses from the drop in Hospital Mater's long position.| Accenture Plc vs. International Business Machines | Accenture Plc vs. Infosys Limited | Accenture Plc vs. Fiserv Inc | Accenture Plc vs. Fidelity National Information |
| Hospital Mater vs. DaVita Inc | Hospital Mater vs. Accenture plc | Hospital Mater vs. Morgan Stanley | Hospital Mater vs. Amazon Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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