Correlation Between CRA International and Accenture Plc

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CRA International 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 CRA International and Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRA International and Accenture plc, you can compare the effects of market volatilities on CRA International 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 CRA International with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRA International and Accenture Plc.

Diversification Opportunities for CRA International and Accenture Plc

0.46
  Correlation Coefficient

Very weak diversification

The 3 months correlation between CRA and Accenture is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CRA International and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and CRA International 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 CRA International 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 CRA International i.e., CRA International and Accenture Plc go up and down completely randomly.

Pair Corralation between CRA International and Accenture Plc

Given the investment horizon of 90 days CRA International is expected to under-perform the Accenture Plc. In addition to that, CRA International is 1.43 times more volatile than Accenture plc. It trades about -0.03 of its total potential returns per unit of risk. Accenture plc is currently generating about -0.01 per unit of volatility. If you would invest  36,129  in Accenture plc on September 26, 2024 and sell it today you would lose (252.00) from holding Accenture plc or give up 0.7% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

CRA International  vs.  Accenture plc

 Performance 
       Timeline  
CRA International 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in CRA International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, CRA International demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Accenture plc 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Accenture plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Accenture Plc is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

CRA International and Accenture Plc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CRA International and Accenture Plc

The main advantage of trading using opposite CRA International and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRA International 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.
The idea behind CRA International and Accenture plc 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.
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets