Correlation Between Perficient and CACI International

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

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

Diversification Opportunities for Perficient and CACI International

0.0

Correlation Coefficient

Perficient  CACI International

Pay attention - limited upside

The 3 months correlation between Perficient and CACI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perficient and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Perficient 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 Perficient 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 Perficient i.e., Perficient and CACI International go up and down completely randomly.

Pair Corralation between Perficient and CACI International

If you would invest (100.00) in Perficient on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Perficient or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Perficient  vs.  CACI International

Perficient

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perficient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Perficient 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

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.

Pair Trading with Perficient and CACI International

The main advantage of trading using opposite Perficient and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perficient 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 Perficient 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 Global Correlations module to find global opportunities by holding instruments from different markets.