Correlation Between Accenture Plc and Fresnillo Plc

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

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

Diversification Opportunities for Accenture Plc and Fresnillo Plc

-0.52

Correlation Coefficient

Accenture Plc  Fresnillo Plc

Excellent diversification

The 3 months correlation between Accenture and Fresnillo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Accenture plc and Fresnillo plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresnillo plc 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 Fresnillo Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresnillo plc has no effect on the direction of Accenture Plc i.e., Accenture Plc and Fresnillo Plc go up and down completely randomly.

Pair Corralation between Accenture Plc and Fresnillo Plc

Assuming the 90 days horizon Accenture plc is expected to under-perform the Fresnillo Plc. But the stock apears to be less risky and, when comparing its historical volatility, Accenture plc is 1.82 times less risky than Fresnillo Plc. The stock trades about -0.03 of its potential returns per unit of risk. The Fresnillo plc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,151  in Fresnillo plc on April 24, 2025 and sell it today you would earn a total of  444.00  from holding Fresnillo plc or generate 38.58% return on investment over 90 days.

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

Accenture plc  vs.  Fresnillo plc

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 nearly stable basic indicators, Accenture Plc is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Fresnillo plc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fresnillo plc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Fresnillo Plc reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accenture Plc and Fresnillo Plc

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

The idea behind Accenture plc and Fresnillo 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 Commodity Directory module to find actively traded commodities issued by global exchanges.