Correlation Between CACI International and ASGN

Can any of the company-specific risk be diversified away by investing in both CACI International and ASGN 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 ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CACI International and ASGN Inc, you can compare the effects of market volatilities on CACI International and ASGN 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 ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CACI International and ASGN.

Diversification Opportunities for CACI International and ASGN

0.74

Correlation Coefficient

CACI International  ASGN

Poor diversification

The 3 months correlation between CACI and ASGN is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN 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 ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of CACI International i.e., CACI International and ASGN go up and down completely randomly.

Pair Corralation between CACI International and ASGN

Given the investment horizon of 90 days CACI International is expected to generate 1.27 times more return on investment than ASGN. However, CACI International is 1.27 times more volatile than ASGN Inc. It trades about -0.04 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.19 per unit of risk. If you would invest  40,617  in CACI International on December 27, 2024 and sell it today you would lose (3,248) from holding CACI International or give up 8.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CACI International  vs.  ASGN Inc

CACI International

Risk-Adjusted Performance

Very Weak

Over the last 90 days CACI International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, CACI International is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

ASGN Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with CACI International and ASGN

The main advantage of trading using opposite CACI International and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CACI International position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.

The idea behind CACI International and ASGN Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.