Correlation Between Cyxtera Technologies and CACI International

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

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

Diversification Opportunities for Cyxtera Technologies and CACI International

0.69

Correlation Coefficient

Cyxtera Technologies  CACI International

Poor diversification

The 3 months correlation between Cyxtera and CACI is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cyxtera Technologies and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Cyxtera Technologies 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 Cyxtera Technologies 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 Cyxtera Technologies i.e., Cyxtera Technologies and CACI International go up and down completely randomly.

Pair Corralation between Cyxtera Technologies and CACI International

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

Cyxtera Technologies  vs.  CACI International

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.

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.

Pair Trading with Cyxtera Technologies and CACI International

The main advantage of trading using opposite Cyxtera Technologies and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyxtera Technologies 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.

The idea behind Cyxtera Technologies and CACI International 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..