Correlation Between CACI International and Computer Task
Can any of the company-specific risk be diversified away by investing in both CACI International and Computer Task 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 CACI International and Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and Computer Task Group, you can compare the effects of market volatilities on CACI International and Computer Task 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 CACI International with a short position of Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and Computer Task.
Diversification Opportunities for CACI International and Computer Task
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CACI and Computer is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task Group and CACI International 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 CACI International are associated (or correlated) with Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of CACI International i.e., CACI International and Computer Task go up and down completely randomly.
Pair Corralation between CACI International and Computer Task
Given the investment horizon of 90 days CACI International is expected to generate 0.57 times more return on investment than Computer Task. However, CACI International is 1.76 times less risky than Computer Task. It trades about 0.06 of its potential returns per unit of risk. Computer Task Group is currently generating about 0.02 per unit of risk. If you would invest 26,618 in CACI International on January 21, 2024 and sell it today you would earn a total of 10,320 from holding CACI International or generate 38.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 82.63% |
Values | Daily Returns |
CACI International vs. Computer Task Group
Performance |
Timeline |
CACI International |
Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CACI International and Computer Task Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CACI International and Computer Task
The main advantage of trading using opposite CACI International and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.CACI International vs. Information Services Group | CACI International vs. Home Bancorp | CACI International vs. CRA International | CACI International vs. Aquagold International |
Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Clarivate Plc | Computer Task vs. Nayax |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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