Correlation Between Heartland Financial and CACI International
Can any of the company-specific risk be diversified away by investing in both Heartland Financial 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 Heartland Financial and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heartland Financial USA and CACI International, you can compare the effects of market volatilities on Heartland Financial 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 Heartland Financial with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heartland Financial and CACI International.
Diversification Opportunities for Heartland Financial and CACI International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Heartland and CACI is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Heartland Financial USA and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Heartland Financial 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 Heartland Financial USA 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 Heartland Financial i.e., Heartland Financial and CACI International go up and down completely randomly.
Pair Corralation between Heartland Financial and CACI International
Assuming the 90 days horizon Heartland Financial USA is expected to under-perform the CACI International. But the preferred stock apears to be less risky and, when comparing its historical volatility, Heartland Financial USA is 2.45 times less risky than CACI International. The preferred stock trades about -0.01 of its potential returns per unit of risk. The CACI International is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Heartland Financial USA vs. CACI International
Performance |
Timeline |
Heartland Financial USA |
CACI International |
Heartland Financial and CACI International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Heartland Financial and CACI International
The main advantage of trading using opposite Heartland Financial and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartland Financial 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.Heartland Financial vs. Wintrust Financial Corp | Heartland Financial vs. Pinnacle Financial Partners | Heartland Financial vs. United Community Banks | Heartland Financial vs. WesBanco |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
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 | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |