Correlation Between Accenture Plc and Ab Large

Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Ab Large 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 Ab Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Accenture plc and Ab Large Cap, you can compare the effects of market volatilities on Accenture Plc and Ab Large 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 Ab Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Ab Large.

Diversification Opportunities for Accenture Plc and Ab Large

0.39

Correlation Coefficient

Accenture Plc  Ab Large

Weak diversification

The 3 months correlation between Accenture and APGCX is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large Cap 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 Ab Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of Accenture Plc i.e., Accenture Plc and Ab Large go up and down completely randomly.

Pair Corralation between Accenture Plc and Ab Large

Considering the 90-day investment horizon Accenture plc is expected to generate 1.99 times more return on investment than Ab Large. However, Accenture Plc is 1.99 times more volatile than Ab Large Cap. It trades about 0.1 of its potential returns per unit of risk. Ab Large Cap is currently generating about 0.03 per unit of risk. If you would invest  24,154  in Accenture plc on September 10, 2025 and sell it today you would earn a total of  2,496  from holding Accenture plc or generate 10.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Accenture plc  vs.  Ab Large Cap

Accenture plc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Accenture plc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, Accenture Plc may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Ab Large Cap

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Large Cap are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Ab Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Accenture Plc and Ab Large

The main advantage of trading using opposite Accenture Plc and Ab Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Ab Large 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 Ab Large will offset losses from the drop in Ab Large's long position.

The idea behind Accenture plc and Ab Large Cap 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.