Correlation Between CACI International and Cyxtera Technologies

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

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

Diversification Opportunities for CACI International and Cyxtera Technologies

0.69

Correlation Coefficient

CACI International  Cyxtera Technologies

Poor diversification

The 3 months correlation between CACI and Cyxtera is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and Cyxtera Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyxtera Technologies 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 Cyxtera Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyxtera Technologies has no effect on the direction of CACI International i.e., CACI International and Cyxtera Technologies go up and down completely randomly.

Pair Corralation between CACI International and Cyxtera Technologies

If you would invest  4.68  in Cyxtera Technologies on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Cyxtera Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.0%
Values	Daily Returns

CACI International  vs.  Cyxtera Technologies

CACI International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CACI International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Cyxtera Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyxtera Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cyxtera Technologies is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CACI International and Cyxtera Technologies

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

The idea behind CACI International and Cyxtera Technologies 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .