Correlation Between CACI International and Parsons Corp
Can any of the company-specific risk be diversified away by investing in both CACI International and Parsons Corp 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 Parsons Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and Parsons Corp, you can compare the effects of market volatilities on CACI International and Parsons Corp 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 Parsons Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and Parsons Corp.
Diversification Opportunities for CACI International and Parsons Corp
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CACI and Parsons is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and Parsons Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parsons Corp 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 Parsons Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parsons Corp has no effect on the direction of CACI International i.e., CACI International and Parsons Corp go up and down completely randomly.
Pair Corralation between CACI International and Parsons Corp
Given the investment horizon of 90 days CACI International is expected to generate 1.21 times more return on investment than Parsons Corp. However, CACI International is 1.21 times more volatile than Parsons Corp. It trades about -0.08 of its potential returns per unit of risk. Parsons Corp is currently generating about -0.25 per unit of risk. If you would invest 41,096 in CACI International on November 2, 2024 and sell it today you would lose (2,428) from holding CACI International or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CACI International vs. Parsons Corp
Performance |
| Timeline |
| CACI International |
| Parsons Corp |
CACI International and Parsons Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CACI International and Parsons Corp
The main advantage of trading using opposite CACI International and Parsons Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, Parsons Corp 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 Parsons Corp will offset losses from the drop in Parsons Corp's long position.| CACI International vs. Leidos Holdings | CACI International vs. Parsons Corp | CACI International vs. ASGN Inc | CACI International vs. ExlService Holdings |
| Parsons Corp vs. Leidos Holdings | Parsons Corp vs. CACI International | Parsons Corp vs. ASGN Inc | Parsons Corp vs. ExlService Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |