Correlation Between Information Services and CACI International
Can any of the company-specific risk be diversified away by investing in both Information Services 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 Information Services and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Information Services Group and CACI International, you can compare the effects of market volatilities on Information Services 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 Information Services with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Information Services and CACI International.
Diversification Opportunities for Information Services and CACI International
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Information and CACI is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Information Services Group and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Information Services 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 Information Services 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 Information Services i.e., Information Services and CACI International go up and down completely randomly.
Pair Corralation between Information Services and CACI International
Considering the 90-day investment horizon Information Services Group is expected to generate 0.79 times more return on investment than CACI International. However, Information Services Group is 1.27 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 312.00 in Information Services Group on October 26, 2024 and sell it today you would earn a total of 11.00 from holding Information Services Group or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Information Services Group vs. CACI International
Performance |
| Timeline |
| Information Services |
| CACI International |
Information Services and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Information Services and CACI International
The main advantage of trading using opposite Information Services and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Information Services 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.| Information Services vs. Formula Systems 1985 | Information Services vs. CSP Inc | Information Services vs. Nayax | Information Services vs. The Hackett Group |
| 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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