Correlation Between ExlService Holdings and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings 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 ExlService Holdings and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Accenture plc, you can compare the effects of market volatilities on ExlService Holdings 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 ExlService Holdings with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Accenture Plc.
Diversification Opportunities for ExlService Holdings and Accenture Plc
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ExlService and Accenture is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and ExlService Holdings 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 ExlService Holdings 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 ExlService Holdings i.e., ExlService Holdings and Accenture Plc go up and down completely randomly.
Pair Corralation between ExlService Holdings and Accenture Plc
Given the investment horizon of 90 days ExlService Holdings is expected to generate 1.21 times more return on investment than Accenture Plc. However, ExlService Holdings is 1.21 times more volatile than Accenture plc. It trades about 0.31 of its potential returns per unit of risk. Accenture plc is currently generating about 0.07 per unit of risk. If you would invest 3,792 in ExlService Holdings on August 28, 2024 and sell it today you would earn a total of 885.00 from holding ExlService Holdings or generate 23.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExlService Holdings vs. Accenture plc
Performance |
| Timeline |
| ExlService Holdings |
| Accenture plc |
ExlService Holdings and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Accenture Plc
The main advantage of trading using opposite ExlService Holdings and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings 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.| ExlService Holdings vs. Oneconnect Financial Technology | ExlService Holdings vs. Global Business Travel | ExlService Holdings vs. Alight Inc | ExlService Holdings vs. CS Disco LLC |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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