Correlation Between CRISPR Therapeutics and Accenture Plc

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

By analyzing existing cross correlation between CRISPR Therapeutics AG and Accenture plc, you can compare the effects of market volatilities on CRISPR Therapeutics 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 CRISPR Therapeutics with a short position of Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRISPR Therapeutics and Accenture Plc.

Diversification Opportunities for CRISPR Therapeutics and Accenture Plc

-0.75

Correlation Coefficient

CRISPR Therapeutics  Accenture Plc

Pay attention - limited upside

The 3 months correlation between CRISPR and Accenture is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CRISPR Therapeutics AG and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc and CRISPR Therapeutics 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 CRISPR Therapeutics AG 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 CRISPR Therapeutics i.e., CRISPR Therapeutics and Accenture Plc go up and down completely randomly.

Pair Corralation between CRISPR Therapeutics and Accenture Plc

Assuming the 90 days trading horizon CRISPR Therapeutics AG is expected to generate 2.51 times more return on investment than Accenture Plc. However, CRISPR Therapeutics is 2.51 times more volatile than Accenture plc. It trades about 0.19 of its potential returns per unit of risk. Accenture plc is currently generating about -0.02 per unit of risk. If you would invest  2,814  in CRISPR Therapeutics AG on April 22, 2025 and sell it today you would earn a total of  1,694  from holding CRISPR Therapeutics AG or generate 60.2% return on investment over 90 days.

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

CRISPR Therapeutics AG  vs.  Accenture plc

CRISPR Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CRISPR Therapeutics AG are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CRISPR Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Accenture plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accenture plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Accenture Plc is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CRISPR Therapeutics and Accenture Plc

The main advantage of trading using opposite CRISPR Therapeutics and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRISPR Therapeutics 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 CRISPR Therapeutics AG 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.

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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.