Correlation Between Accenture Plc and Gartner
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Gartner 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 Accenture Plc and Gartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Gartner, you can compare the effects of market volatilities on Accenture Plc and Gartner 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 Accenture Plc with a short position of Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Gartner.
Diversification Opportunities for Accenture Plc and Gartner
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Accenture and Gartner is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner and Accenture Plc 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 Accenture plc are associated (or correlated) with Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of Accenture Plc i.e., Accenture Plc and Gartner go up and down completely randomly.
Pair Corralation between Accenture Plc and Gartner
Considering the 90-day investment horizon Accenture Plc is expected to generate 3.92 times less return on investment than Gartner. But when comparing it to its historical volatility, Accenture plc is 1.05 times less risky than Gartner. It trades about 0.02 of its potential returns per unit of risk. Gartner is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 25,955 in Gartner on January 25, 2024 and sell it today you would earn a total of 19,071 from holding Gartner or generate 73.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Accenture plc vs. Gartner
Performance |
Timeline |
Accenture plc |
Gartner |
Accenture Plc and Gartner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accenture Plc and Gartner
The main advantage of trading using opposite Accenture Plc and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.Accenture Plc vs. FiscalNote Holdings | Accenture Plc vs. Innodata | Accenture Plc vs. Aurora Innovation | Accenture Plc vs. Conduent |
Gartner vs. FiscalNote Holdings | Gartner vs. Innodata | Gartner vs. Aurora Innovation | Gartner vs. Conduent |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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