Correlation Between Capstone Technologies and CACI International
Can any of the company-specific risk be diversified away by investing in both Capstone Technologies and CACI International 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 Capstone Technologies and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Technologies Group and CACI International, you can compare the effects of market volatilities on Capstone Technologies and CACI International 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 Capstone Technologies with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Technologies and CACI International.
Diversification Opportunities for Capstone Technologies and CACI International
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capstone and CACI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Technologies Group and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Capstone Technologies 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 Capstone Technologies Group are associated (or correlated) with CACI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CACI International has no effect on the direction of Capstone Technologies i.e., Capstone Technologies and CACI International go up and down completely randomly.
Pair Corralation between Capstone Technologies and CACI International
If you would invest 35.00 in Capstone Technologies Group on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Capstone Technologies Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Capstone Technologies Group vs. CACI International
Performance |
| Timeline |
| Capstone Technologies |
| CACI International |
Capstone Technologies and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Technologies and CACI International
The main advantage of trading using opposite Capstone Technologies and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Technologies position performs unexpectedly, CACI International 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 CACI International will offset losses from the drop in CACI International's long position.| Capstone Technologies vs. CACI International | Capstone Technologies vs. CDW Corp | Capstone Technologies vs. Jack Henry Associates | Capstone Technologies vs. Broadridge Financial Solutions |
| CACI International vs. Leidos Holdings | CACI International vs. Parsons Corp | CACI International vs. ASGN Inc | CACI International 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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