Correlation Between 9F and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both 9F 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 9F and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 9F Inc and Accenture plc, you can compare the effects of market volatilities on 9F 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 9F with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of 9F and Accenture Plc.
Diversification Opportunities for 9F and Accenture Plc
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between 9F and Accenture is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding 9F Inc and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and 9F 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 9F Inc 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 9F i.e., 9F and Accenture Plc go up and down completely randomly.
Pair Corralation between 9F and Accenture Plc
Considering the 90-day investment horizon 9F Inc is expected to under-perform the Accenture Plc. In addition to that, 9F is 5.07 times more volatile than Accenture plc. It trades about -0.01 of its total potential returns per unit of risk. Accenture plc is currently generating about 0.04 per unit of volatility. If you would invest 30,013 in Accenture plc on August 31, 2024 and sell it today you would earn a total of 6,224 from holding Accenture plc or generate 20.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
9F Inc vs. Accenture plc
Performance |
| Timeline |
| 9F Inc |
| Accenture plc |
9F and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 9F and Accenture Plc
The main advantage of trading using opposite 9F and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 9F 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.The idea behind 9F Inc and Accenture plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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