Correlation Between CACI International and Hackett
Can any of the company-specific risk be diversified away by investing in both CACI International and Hackett 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 Hackett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and The Hackett Group, you can compare the effects of market volatilities on CACI International and Hackett 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 Hackett. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and Hackett.
Diversification Opportunities for CACI International and Hackett
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CACI and Hackett is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and The Hackett Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hackett Group 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 Hackett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hackett Group has no effect on the direction of CACI International i.e., CACI International and Hackett go up and down completely randomly.
Pair Corralation between CACI International and Hackett
Given the investment horizon of 90 days CACI International is expected to under-perform the Hackett. In addition to that, CACI International is 2.71 times more volatile than The Hackett Group. It trades about -0.08 of its total potential returns per unit of risk. The Hackett Group is currently generating about 0.1 per unit of volatility. If you would invest 3,028 in The Hackett Group on November 2, 2024 and sell it today you would earn a total of 68.00 from holding The Hackett Group or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CACI International vs. The Hackett Group
Performance |
| Timeline |
| CACI International |
| Hackett Group |
CACI International and Hackett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CACI International and Hackett
The main advantage of trading using opposite CACI International and Hackett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, Hackett 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 Hackett will offset losses from the drop in Hackett's long position.| CACI International vs. Leidos Holdings | CACI International vs. Parsons Corp | CACI International vs. ASGN Inc | CACI International vs. ExlService Holdings |
| Hackett vs. Information Services Group | Hackett vs. Home Bancorp | Hackett vs. Heritage Financial | Hackett vs. CRA 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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