Correlation Between Accenture Plc and Intel
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Intel, you can compare the effects of market volatilities on Accenture Plc and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Intel.
Diversification Opportunities for Accenture Plc and Intel
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accenture and Intel is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Accenture Plc i.e., Accenture Plc and Intel go up and down completely randomly.
Pair Corralation between Accenture Plc and Intel
Assuming the 90 days horizon Accenture plc is expected to generate 0.41 times more return on investment than Intel. However, Accenture plc is 2.46 times less risky than Intel. It trades about 0.16 of its potential returns per unit of risk. Intel is currently generating about -0.02 per unit of risk. If you would invest 25,643 in Accenture plc on August 29, 2024 and sell it today you would earn a total of 8,672 from holding Accenture plc or generate 33.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. Intel
Performance |
| Timeline |
| Accenture plc |
| Intel |
Accenture Plc and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and Intel
The main advantage of trading using opposite Accenture Plc and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel'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 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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