Correlation Between BTG Pactual and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both BTG Pactual 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 BTG Pactual and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTG Pactual Logstica and Accenture plc, you can compare the effects of market volatilities on BTG Pactual 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 BTG Pactual with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Accenture Plc.
Diversification Opportunities for BTG Pactual and Accenture Plc
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Accenture is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and BTG Pactual 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 BTG Pactual Logstica 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 BTG Pactual i.e., BTG Pactual and Accenture Plc go up and down completely randomly.
Pair Corralation between BTG Pactual and Accenture Plc
Assuming the 90 days trading horizon BTG Pactual is expected to generate 11.62 times less return on investment than Accenture Plc. But when comparing it to its historical volatility, BTG Pactual Logstica is 2.65 times less risky than Accenture Plc. It trades about 0.01 of its potential returns per unit of risk. Accenture plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 209,635 in Accenture plc on August 30, 2024 and sell it today you would earn a total of 3,649 from holding Accenture plc or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Accenture plc
Performance |
| Timeline |
| BTG Pactual Logstica |
| Accenture plc |
BTG Pactual and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Accenture Plc
The main advantage of trading using opposite BTG Pactual and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual 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.| BTG Pactual vs. Fundo Investimento Imobiliario | BTG Pactual vs. KILIMA VOLKANO RECEBVEIS | BTG Pactual vs. DEVANT PROPERTIES FUNDO | BTG Pactual vs. SPARTA FIAGRO FDO |
| Accenture Plc vs. TAL Education Group | Accenture Plc vs. T Mobile | Accenture Plc vs. Telecomunicaes Brasileiras SA | Accenture Plc vs. Verizon Communications |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |