Correlation Between Conduent and CACI International
Can any of the company-specific risk be diversified away by investing in both Conduent 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 Conduent and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conduent and CACI International, you can compare the effects of market volatilities on Conduent 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 Conduent with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conduent and CACI International.
Diversification Opportunities for Conduent and CACI International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Conduent and CACI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Conduent and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Conduent 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 Conduent 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 Conduent i.e., Conduent and CACI International go up and down completely randomly.
Pair Corralation between Conduent and CACI International
Given the investment horizon of 90 days Conduent is expected to generate 1.25 times more return on investment than CACI International. However, Conduent is 1.25 times more volatile than CACI International. It trades about 0.08 of its potential returns per unit of risk. CACI International is currently generating about -0.15 per unit of risk. If you would invest 356.00 in Conduent on October 25, 2024 and sell it today you would earn a total of 46.00 from holding Conduent or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conduent vs. CACI International
Performance |
| Timeline |
| Conduent |
| CACI International |
Conduent and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conduent and CACI International
The main advantage of trading using opposite Conduent and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conduent 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.| Conduent vs. Fidelity National Information | Conduent vs. International Business Machines | Conduent vs. Kyndryl Holdings | Conduent vs. DXC Technology Co |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |