Correlation Between Accenture Plc and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and CureVac NV 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 CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and CureVac NV, you can compare the effects of market volatilities on Accenture Plc and CureVac NV 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 CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and CureVac NV.
Diversification Opportunities for Accenture Plc and CureVac NV
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accenture and CureVac is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV 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 CureVac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CureVac NV has no effect on the direction of Accenture Plc i.e., Accenture Plc and CureVac NV go up and down completely randomly.
Pair Corralation between Accenture Plc and CureVac NV
Assuming the 90 days horizon Accenture plc is expected to generate 0.38 times more return on investment than CureVac NV. However, Accenture plc is 2.66 times less risky than CureVac NV. It trades about 0.01 of its potential returns per unit of risk. CureVac NV is currently generating about -0.01 per unit of risk. If you would invest 33,674 in Accenture plc on August 29, 2024 and sell it today you would earn a total of 776.00 from holding Accenture plc or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.53% |
| Values | Daily Returns |
Accenture plc vs. CureVac NV
Performance |
| Timeline |
| Accenture plc |
| CureVac NV |
Accenture Plc and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and CureVac NV
The main advantage of trading using opposite Accenture Plc and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, CureVac NV 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 CureVac NV will offset losses from the drop in CureVac NV's long position.| Accenture Plc vs. PICKN PAY STORES | Accenture Plc vs. AEON STORES | Accenture Plc vs. SINGAPORE AIRLINES | Accenture Plc vs. Aegean Airlines SA |
| CureVac NV vs. BioNTech SE | CureVac NV vs. Moderna | CureVac NV vs. Nel ASA | CureVac NV vs. Ballard Power Systems |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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