Correlation Between CACI International and BIT Mining
Can any of the company-specific risk be diversified away by investing in both CACI International and BIT Mining 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 CACI International and BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and BIT Mining, you can compare the effects of market volatilities on CACI International and BIT Mining 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 CACI International with a short position of BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and BIT Mining.
Diversification Opportunities for CACI International and BIT Mining
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between CACI and BIT is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining and CACI 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 CACI International are associated (or correlated) with BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of CACI International i.e., CACI International and BIT Mining go up and down completely randomly.
Pair Corralation between CACI International and BIT Mining
Given the investment horizon of 90 days CACI International is expected to generate 0.35 times more return on investment than BIT Mining. However, CACI International is 2.86 times less risky than BIT Mining. It trades about 0.5 of its potential returns per unit of risk. BIT Mining is currently generating about -0.02 per unit of risk. If you would invest 40,488 in CACI International on October 25, 2024 and sell it today you would earn a total of 6,023 from holding CACI International or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CACI International vs. BIT Mining
Performance |
| Timeline |
| CACI International |
| BIT Mining |
CACI International and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CACI International and BIT Mining
The main advantage of trading using opposite CACI International and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, BIT Mining 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 BIT Mining will offset losses from the drop in BIT Mining's long position.| CACI International vs. Leidos Holdings | CACI International vs. Parsons Corp | CACI International vs. ASGN Inc | CACI International vs. ExlService Holdings |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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