Correlation Between Accenture Plc and Data Storage

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

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

Diversification Opportunities for Accenture Plc and Data Storage

-0.57

Correlation Coefficient

Accenture Plc  Data Storage

Excellent diversification

The 3 months correlation between Accenture and Data is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Data Storage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Storage Corp 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 Data Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Storage Corp has no effect on the direction of Accenture Plc i.e., Accenture Plc and Data Storage go up and down completely randomly.

Pair Corralation between Accenture Plc and Data Storage

Considering the 90-day investment horizon Accenture plc is expected to under-perform the Data Storage. But the stock apears to be less risky and, when comparing its historical volatility, Accenture plc is 4.35 times less risky than Data Storage. The stock trades about -0.21 of its potential returns per unit of risk. The Data Storage Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  369.00  in Data Storage Corp on May 21, 2025 and sell it today you would earn a total of  85.00  from holding Data Storage Corp or generate 23.04% return on investment over 90 days.

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

Accenture plc  vs.  Data Storage Corp

Accenture plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Accenture plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Data Storage Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Data Storage Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Data Storage unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accenture Plc and Data Storage

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

The idea behind Accenture plc and Data Storage Corp 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.