Correlation Between Fidelity National and CACI International
Can any of the company-specific risk be diversified away by investing in both Fidelity National 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 Fidelity National and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Information and CACI International, you can compare the effects of market volatilities on Fidelity National 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 Fidelity National with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and CACI International.
Diversification Opportunities for Fidelity National and CACI International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and CACI is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Fidelity National 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 Fidelity National Information 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 Fidelity National i.e., Fidelity National and CACI International go up and down completely randomly.
Pair Corralation between Fidelity National and CACI International
Considering the 90-day investment horizon Fidelity National is expected to generate 1.97 times less return on investment than CACI International. In addition to that, Fidelity National is 1.24 times more volatile than CACI International. It trades about 0.02 of its total potential returns per unit of risk. CACI International is currently generating about 0.05 per unit of volatility. If you would invest 30,472 in CACI International on October 25, 2024 and sell it today you would earn a total of 11,692 from holding CACI International or generate 38.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. CACI International
Performance |
| Timeline |
| Fidelity National |
| CACI International |
Fidelity National and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and CACI International
The main advantage of trading using opposite Fidelity National and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National 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.| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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