Correlation Between Cantaloupe and CACI International
Can any of the company-specific risk be diversified away by investing in both Cantaloupe 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 Cantaloupe and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantaloupe and CACI International, you can compare the effects of market volatilities on Cantaloupe 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 Cantaloupe with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantaloupe and CACI International.
Diversification Opportunities for Cantaloupe and CACI International
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantaloupe and CACI is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cantaloupe and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Cantaloupe 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 Cantaloupe 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 Cantaloupe i.e., Cantaloupe and CACI International go up and down completely randomly.
Pair Corralation between Cantaloupe and CACI International
Given the investment horizon of 90 days Cantaloupe is expected to generate 0.99 times more return on investment than CACI International. However, Cantaloupe is 1.01 times less risky than CACI International. It trades about -0.04 of its potential returns per unit of risk. CACI International is currently generating about -0.16 per unit of risk. If you would invest 890.00 in Cantaloupe on October 26, 2024 and sell it today you would lose (63.00) from holding Cantaloupe or give up 7.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantaloupe vs. CACI International
Performance |
| Timeline |
| Cantaloupe |
| CACI International |
Cantaloupe and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantaloupe and CACI International
The main advantage of trading using opposite Cantaloupe and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantaloupe 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.| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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