Correlation Between CACI International and Cantaloupe
Can any of the company-specific risk be diversified away by investing in both CACI International and Cantaloupe 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 Cantaloupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and Cantaloupe, you can compare the effects of market volatilities on CACI International and Cantaloupe 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 Cantaloupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and Cantaloupe.
Diversification Opportunities for CACI International and Cantaloupe
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between CACI and Cantaloupe is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and Cantaloupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantaloupe 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 Cantaloupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantaloupe has no effect on the direction of CACI International i.e., CACI International and Cantaloupe go up and down completely randomly.
Pair Corralation between CACI International and Cantaloupe
Given the investment horizon of 90 days CACI International is expected to under-perform the Cantaloupe. In addition to that, CACI International is 1.01 times more volatile than Cantaloupe. It trades about -0.16 of its total potential returns per unit of risk. Cantaloupe is currently generating about -0.04 per unit of volatility. If you would invest 890.00 in Cantaloupe on October 26, 2024 and sell it today you would lose (63.00) from holding Cantaloupe or give up 7.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CACI International vs. Cantaloupe
Performance |
| Timeline |
| CACI International |
| Cantaloupe |
CACI International and Cantaloupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CACI International and Cantaloupe
The main advantage of trading using opposite CACI International and Cantaloupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, Cantaloupe 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 Cantaloupe will offset losses from the drop in Cantaloupe's long position.| CACI International vs. Leidos Holdings | CACI International vs. Parsons Corp | CACI International vs. ASGN Inc | CACI International vs. ExlService Holdings |
| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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