Correlation Between CACI International and CGI
Can any of the company-specific risk be diversified away by investing in both CACI International and CGI 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 CGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CACI International and CGI Inc, you can compare the effects of market volatilities on CACI International and CGI 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 CGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and CGI.
Diversification Opportunities for CACI International and CGI
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CACI and CGI is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and CGI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGI Inc 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 CGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGI Inc has no effect on the direction of CACI International i.e., CACI International and CGI go up and down completely randomly.
Pair Corralation between CACI International and CGI
Given the investment horizon of 90 days CACI International is expected to generate 1.77 times more return on investment than CGI. However, CACI International is 1.77 times more volatile than CGI Inc. It trades about 0.21 of its potential returns per unit of risk. CGI Inc is currently generating about -0.4 per unit of risk. If you would invest 37,498 in CACI International on February 1, 2024 and sell it today you would earn a total of 2,725 from holding CACI International or generate 7.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CACI International vs. CGI Inc
Performance |
Timeline |
CACI International |
CGI Inc |
CACI International and CGI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CACI International and CGI
The main advantage of trading using opposite CACI International and CGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, CGI 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 CGI will offset losses from the drop in CGI's long position.CACI International vs. FiscalNote Holdings | CACI International vs. Innodata | CACI International vs. Aurora Innovation | CACI International vs. Conduent |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |