Correlation Between Atos SE and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both Atos SE and Accenture Plc 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 Atos SE and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Accenture plc, you can compare the effects of market volatilities on Atos SE and Accenture Plc 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 Atos SE with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Accenture Plc.
Diversification Opportunities for Atos SE and Accenture Plc
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atos and Accenture is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Atos SE 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 Atos SE are associated (or correlated) with Accenture Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accenture plc has no effect on the direction of Atos SE i.e., Atos SE and Accenture Plc go up and down completely randomly.
Pair Corralation between Atos SE and Accenture Plc
Assuming the 90 days horizon Atos SE is expected to generate 30.16 times more return on investment than Accenture Plc. However, Atos SE is 30.16 times more volatile than Accenture plc. It trades about 0.03 of its potential returns per unit of risk. Accenture plc is currently generating about 0.05 per unit of risk. If you would invest 1,180 in Atos SE on October 11, 2024 and sell it today you would lose (1,180) from holding Atos SE or give up 99.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. Accenture plc
Performance |
| Timeline |
| Atos SE |
| Accenture plc |
Atos SE and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and Accenture Plc
The main advantage of trading using opposite Atos SE and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Accenture Plc 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 Accenture Plc will offset losses from the drop in Accenture Plc's long position.| Atos SE vs. Accenture plc | Atos SE vs. International Business Machines | Atos SE vs. Capgemini SE | Atos SE vs. FUJITSU LTD ADR |
| Accenture Plc vs. Cairo Communication SpA | Accenture Plc vs. TRADELINK ELECTRON | Accenture Plc vs. FLOW TRADERS LTD | Accenture Plc vs. ecotel communication ag |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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