Correlation Between International Money and Accenture Plc

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

Diversification Opportunities for International Money and Accenture Plc

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between International and Accenture is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express and Accenture Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture Plc and International Money 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 International Money Express 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 International Money i.e., International Money and Accenture Plc go up and down completely randomly.

Pair Corralation between International Money and Accenture Plc

Given the investment horizon of 90 days International Money Express is expected to generate 1.35 times more return on investment than Accenture Plc. However, International Money is 1.35 times more volatile than Accenture Plc. It trades about -0.01 of its potential returns per unit of risk. Accenture Plc is currently generating about -0.22 per unit of risk. If you would invest  2,364  in International Money Express on June 27, 2022 and sell it today you would lose (34.00)  from holding International Money Express or give up 1.44% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy97.73%
ValuesDaily Returns

International Money Express  vs.  Accenture Plc

 Performance (%) 
       Timeline  
International Money 
International Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in International Money Express are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, International Money reported solid returns over the last few months and may actually be approaching a breakup point.

International Price Channel

Accenture Plc 
Accenture Performance
0 of 100
Over the last 90 days Accenture Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Accenture Price Channel

International Money and Accenture Plc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with International Money and Accenture Plc

The main advantage of trading using opposite International Money and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Money 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.
International Money vs. Industrias Bachoco SA
The idea behind International Money Express 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.
Accenture Plc vs. Industrias Bachoco SA
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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