Correlation Between Accenture Plc and G III
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and G III 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 G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and G III Apparel Group, you can compare the effects of market volatilities on Accenture Plc and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and G III.
Diversification Opportunities for Accenture Plc and G III
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Accenture and GI4 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Accenture Plc i.e., Accenture Plc and G III go up and down completely randomly.
Pair Corralation between Accenture Plc and G III
Assuming the 90 days horizon Accenture Plc is expected to generate 1.8 times less return on investment than G III. But when comparing it to its historical volatility, Accenture plc is 2.05 times less risky than G III. It trades about 0.06 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,540 in G III Apparel Group on November 19, 2024 and sell it today you would earn a total of 1,320 from holding G III Apparel Group or generate 85.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. G III Apparel Group
Performance |
| Timeline |
| Accenture plc |
| G III Apparel |
Accenture Plc and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and G III
The main advantage of trading using opposite Accenture Plc and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| Accenture Plc vs. United Microelectronics Corp | Accenture Plc vs. CARSALESCOM | Accenture Plc vs. H2O Retailing | Accenture Plc vs. Auto Trader Group |
| G III vs. Kingdee International Software | G III vs. ScanSource | G III vs. MOLSON RS BEVERAGE | G III vs. Tsingtao Brewery |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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