Correlation Between Capgemini and Accelerated Technologies

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

By analyzing existing cross correlation between Capgemini SE and Accelerated Technologies Holding, you can compare the effects of market volatilities on Capgemini and Accelerated Technologies 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 Capgemini with a short position of Accelerated Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and Accelerated Technologies.

Diversification Opportunities for Capgemini and Accelerated Technologies

0.0

Correlation Coefficient

Capgemini  Accelerated Technologies

Pay attention - limited upside

The 3 months correlation between Capgemini and Accelerated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and Accelerated Technologies Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerated Technologies and Capgemini 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 Capgemini SE are associated (or correlated) with Accelerated Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerated Technologies has no effect on the direction of Capgemini i.e., Capgemini and Accelerated Technologies go up and down completely randomly.

Pair Corralation between Capgemini and Accelerated Technologies

If you would invest  0.01  in Accelerated Technologies Holding on May 3, 2025 and sell it today you would earn a total of  0.00  from holding Accelerated Technologies Holding or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Capgemini SE  vs.  Accelerated Technologies Holdi

Capgemini SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Capgemini SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Capgemini is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Accelerated Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accelerated Technologies Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Accelerated Technologies is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Capgemini and Accelerated Technologies

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

The idea behind Capgemini SE and Accelerated Technologies Holding 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.