Correlation Between CACI International and Taskus

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

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

Diversification Opportunities for CACI International and Taskus

0.54

Correlation Coefficient

CACI International  Taskus

Very weak diversification

The 3 months correlation between CACI and Taskus is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and Taskus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taskus 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 Taskus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taskus Inc has no effect on the direction of CACI International i.e., CACI International and Taskus go up and down completely randomly.

Pair Corralation between CACI International and Taskus

Given the investment horizon of 90 days CACI International is expected to generate 0.89 times more return on investment than Taskus. However, CACI International is 1.12 times less risky than Taskus. It trades about -0.03 of its potential returns per unit of risk. Taskus Inc is currently generating about -0.09 per unit of risk. If you would invest  40,223  in CACI International on December 28, 2024 and sell it today you would lose (2,624) from holding CACI International or give up 6.52% of portfolio value over 90 days.

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

CACI International  vs.  Taskus 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.

Taskus Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Taskus Inc 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 basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with CACI International and Taskus

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

The idea behind CACI International and Taskus 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.