Correlation Between DXC Technology and CACI International
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and CACI International, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and CACI International.
Diversification Opportunities for DXC Technology and CACI International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DXC and CACI is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and DXC Technology 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 DXC Technology Co 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 DXC Technology i.e., DXC Technology and CACI International go up and down completely randomly.
Pair Corralation between DXC Technology and CACI International
Considering the 90-day investment horizon DXC Technology Co is expected to generate 1.52 times more return on investment than CACI International. However, DXC Technology is 1.52 times more volatile than CACI International. It trades about 0.13 of its potential returns per unit of risk. CACI International is currently generating about 0.07 per unit of risk. If you would invest 1,516 in DXC Technology Co on August 24, 2024 and sell it today you would earn a total of 666.00 from holding DXC Technology Co or generate 43.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. CACI International
Performance |
| Timeline |
| DXC Technology |
| CACI International |
DXC Technology and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and CACI International
The main advantage of trading using opposite DXC Technology and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. CACI International | DXC Technology vs. CDW Corp | DXC Technology vs. Jack Henry Associates | DXC Technology 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |