Correlation Between CACI International and VNET Group
Can any of the company-specific risk be diversified away by investing in both CACI International and VNET Group 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 VNET Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and VNET Group DRC, you can compare the effects of market volatilities on CACI International and VNET Group 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 VNET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and VNET Group.
Diversification Opportunities for CACI International and VNET Group
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CACI and VNET is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and VNET Group DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNET Group DRC 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 VNET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNET Group DRC has no effect on the direction of CACI International i.e., CACI International and VNET Group go up and down completely randomly.
Pair Corralation between CACI International and VNET Group
Given the investment horizon of 90 days CACI International is expected to generate 0.43 times more return on investment than VNET Group. However, CACI International is 2.34 times less risky than VNET Group. It trades about 0.18 of its potential returns per unit of risk. VNET Group DRC is currently generating about -0.1 per unit of risk. If you would invest 32,954 in CACI International on December 31, 2024 and sell it today you would earn a total of 3,786 from holding CACI International or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CACI International vs. VNET Group DRC
Performance |
| Timeline |
| CACI International |
| VNET Group DRC |
CACI International and VNET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CACI International and VNET Group
The main advantage of trading using opposite CACI International and VNET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, VNET Group 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 VNET Group will offset losses from the drop in VNET Group's long position.| CACI International vs. Fiserv, | ||
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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