Correlation Between SSC Technologies and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both SSC Technologies 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 SSC Technologies and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSC Technologies Holdings, and Accenture plc, you can compare the effects of market volatilities on SSC Technologies 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 SSC Technologies with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Technologies and Accenture Plc.
Diversification Opportunities for SSC Technologies and Accenture Plc
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SSC and Accenture is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SSC Technologies Holdings, and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and SSC Technologies 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 SSC Technologies 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 SSC Technologies i.e., SSC Technologies and Accenture Plc go up and down completely randomly.
Pair Corralation between SSC Technologies and Accenture Plc
Assuming the 90 days trading horizon SSC Technologies Holdings, is expected to generate 1.01 times more return on investment than Accenture Plc. However, SSC Technologies is 1.01 times more volatile than Accenture plc. It trades about 0.13 of its potential returns per unit of risk. Accenture plc is currently generating about 0.11 per unit of risk. If you would invest 5,239 in SSC Technologies Holdings, on November 7, 2024 and sell it today you would earn a total of 2,771 from holding SSC Technologies Holdings, or generate 52.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.06% |
| Values | Daily Returns |
SSC Technologies Holdings, vs. Accenture plc
Performance |
| Timeline |
| SSC Technologies Hol |
| Accenture plc |
SSC Technologies and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSC Technologies and Accenture Plc
The main advantage of trading using opposite SSC Technologies and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSC Technologies 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.| SSC Technologies vs. ServiceNow | SSC Technologies vs. Uber Technologies | SSC Technologies vs. Snowflake | SSC Technologies vs. Datadog, |
| Accenture Plc vs. MAHLE Metal Leve | Accenture Plc vs. Beyond Meat | Accenture Plc vs. Broadridge Financial Solutions, | Accenture Plc vs. Datadog, |
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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