Correlation Between Marfrig Global and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both Marfrig Global 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 Marfrig Global and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marfrig Global Foods and Accenture plc, you can compare the effects of market volatilities on Marfrig Global 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 Marfrig Global with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfrig Global and Accenture Plc.
Diversification Opportunities for Marfrig Global and Accenture Plc
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marfrig and Accenture is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Marfrig Global Foods and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Marfrig Global 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 Marfrig Global Foods 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 Marfrig Global i.e., Marfrig Global and Accenture Plc go up and down completely randomly.
Pair Corralation between Marfrig Global and Accenture Plc
Assuming the 90 days trading horizon Marfrig Global Foods is expected to under-perform the Accenture Plc. In addition to that, Marfrig Global is 2.4 times more volatile than Accenture plc. It trades about -0.18 of its total potential returns per unit of risk. Accenture plc is currently generating about -0.12 per unit of volatility. If you would invest 218,024 in Accenture plc on October 29, 2024 and sell it today you would lose (4,610) from holding Accenture plc or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Marfrig Global Foods vs. Accenture plc
Performance |
| Timeline |
| Marfrig Global Foods |
| Accenture plc |
Marfrig Global and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfrig Global and Accenture Plc
The main advantage of trading using opposite Marfrig Global and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfrig Global 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.| Marfrig Global vs. JBS SA | Marfrig Global vs. Minerva SA | Marfrig Global vs. BRF SA | Marfrig Global vs. Companhia Siderrgica Nacional |
| Accenture Plc vs. TechnipFMC plc | Accenture Plc vs. SSC Technologies Holdings, | Accenture Plc vs. Eastman Chemical | Accenture Plc vs. Palantir Technologies |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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