Correlation Between CACI International and FRONTEO
Can any of the company-specific risk be diversified away by investing in both CACI International and FRONTEO 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 FRONTEO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and FRONTEO, you can compare the effects of market volatilities on CACI International and FRONTEO 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 FRONTEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and FRONTEO.
Diversification Opportunities for CACI International and FRONTEO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CACI and FRONTEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and FRONTEO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRONTEO 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 FRONTEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRONTEO has no effect on the direction of CACI International i.e., CACI International and FRONTEO go up and down completely randomly.
Pair Corralation between CACI International and FRONTEO
If you would invest 26,618 in CACI International on January 20, 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 | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
CACI International vs. FRONTEO
Performance |
Timeline |
CACI International |
FRONTEO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CACI International and FRONTEO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CACI International and FRONTEO
The main advantage of trading using opposite CACI International and FRONTEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, FRONTEO 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 FRONTEO will offset losses from the drop in FRONTEO's long position.CACI International vs. Information Services Group | CACI International vs. Home Bancorp | CACI International vs. CRA International | CACI International vs. Aquagold International |
FRONTEO vs. Transocean | FRONTEO vs. Helmerich and Payne | FRONTEO vs. Willamette Valley Vineyards | FRONTEO vs. CanSino Biologics |
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.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |