Correlation Between Accenture Plc and Horace Mann
Can any of the company-specific risk be diversified away by investing in both Accenture Plc and Horace Mann 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 Horace Mann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accenture plc and Horace Mann Educators, you can compare the effects of market volatilities on Accenture Plc and Horace Mann 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 Horace Mann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accenture Plc and Horace Mann.
Diversification Opportunities for Accenture Plc and Horace Mann
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Accenture and Horace is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Horace Mann Educators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horace Mann Educators 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 Horace Mann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horace Mann Educators has no effect on the direction of Accenture Plc i.e., Accenture Plc and Horace Mann go up and down completely randomly.
Pair Corralation between Accenture Plc and Horace Mann
Considering the 90-day investment horizon Accenture plc is expected to under-perform the Horace Mann. But the stock apears to be less risky and, when comparing its historical volatility, Accenture plc is 1.05 times less risky than Horace Mann. The stock trades about -0.18 of its potential returns per unit of risk. The Horace Mann Educators is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,574 in Horace Mann Educators on January 25, 2024 and sell it today you would earn a total of 108.00 from holding Horace Mann Educators or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accenture plc vs. Horace Mann Educators
Performance |
| Timeline |
| Accenture plc |
| Horace Mann Educators |
Accenture Plc and Horace Mann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accenture Plc and Horace Mann
The main advantage of trading using opposite Accenture Plc and Horace Mann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accenture Plc position performs unexpectedly, Horace Mann 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 Horace Mann will offset losses from the drop in Horace Mann's long position.| Accenture Plc vs. FiscalNote Holdings | Accenture Plc vs. Innodata | Accenture Plc vs. Aurora Innovation | Accenture Plc vs. Conduent |
| Horace Mann vs. Global Indemnity PLC | Horace Mann vs. Selective Insurance Group | Horace Mann vs. Kemper | Horace Mann vs. Stewart Information Services |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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