Correlation Between DXC Technology and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Accenture plc, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Accenture Plc.
Diversification Opportunities for DXC Technology and Accenture Plc
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between DXC and Accenture is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and DXC Technology 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 DXC Technology Co 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 DXC Technology i.e., DXC Technology and Accenture Plc go up and down completely randomly.
Pair Corralation between DXC Technology and Accenture Plc
Considering the 90-day investment horizon DXC Technology Co is expected to generate 1.6 times more return on investment than Accenture Plc. However, DXC Technology is 1.6 times more volatile than Accenture plc. It trades about 0.08 of its potential returns per unit of risk. Accenture plc is currently generating about 0.07 per unit of risk. If you would invest 2,038 in DXC Technology Co on September 3, 2024 and sell it today you would earn a total of 212.00 from holding DXC Technology Co or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. Accenture plc
Performance |
| Timeline |
| DXC Technology |
| Accenture plc |
DXC Technology and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Accenture Plc
The main advantage of trading using opposite DXC Technology and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. Accenture plc | DXC Technology vs. International Business Machines | DXC Technology vs. ASGN Inc | DXC Technology vs. ExlService Holdings |
| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |