Correlation Between Computer Task and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both Computer Task 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 Computer Task and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Task Group and Accenture plc, you can compare the effects of market volatilities on Computer Task 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 Computer Task with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Task and Accenture Plc.
Diversification Opportunities for Computer Task and Accenture Plc
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Computer and Accenture is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Computer Task Group and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and Computer Task 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 Computer Task Group 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 Computer Task i.e., Computer Task and Accenture Plc go up and down completely randomly.
Pair Corralation between Computer Task and Accenture Plc
Considering the 90-day investment horizon Computer Task Group is expected to generate 1.43 times more return on investment than Accenture Plc. However, Computer Task is 1.43 times more volatile than Accenture plc. It trades about 0.03 of its potential returns per unit of risk. Accenture plc is currently generating about 0.02 per unit of risk. If you would invest 908.00 in Computer Task Group on January 26, 2024 and sell it today you would earn a total of 142.00 from holding Computer Task Group or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.98% |
| Values | Daily Returns |
Computer Task Group vs. Accenture plc
Performance |
| Timeline |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Accenture plc |
Computer Task and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Task and Accenture Plc
The main advantage of trading using opposite Computer Task and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Task 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.| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Clarivate Plc | Computer Task vs. Nayax |
| Accenture Plc vs. FiscalNote Holdings | Accenture Plc vs. Innodata | Accenture Plc vs. Aurora Innovation | Accenture Plc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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