Correlation Between Clarivate Plc and CACI International
Can any of the company-specific risk be diversified away by investing in both Clarivate Plc 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 Clarivate Plc and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clarivate Plc and CACI International, you can compare the effects of market volatilities on Clarivate Plc 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 Clarivate Plc with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clarivate Plc and CACI International.
Diversification Opportunities for Clarivate Plc and CACI International
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clarivate and CACI is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Clarivate Plc and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Clarivate Plc 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 Clarivate Plc 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 Clarivate Plc i.e., Clarivate Plc and CACI International go up and down completely randomly.
Pair Corralation between Clarivate Plc and CACI International
Assuming the 90 days trading horizon Clarivate Plc is expected to generate 2.81 times less return on investment than CACI International. In addition to that, Clarivate Plc is 2.31 times more volatile than CACI International. It trades about 0.02 of its total potential returns per unit of risk. CACI International is currently generating about 0.16 per unit of volatility. If you would invest 32,483 in CACI International on February 2, 2024 and sell it today you would earn a total of 8,287 from holding CACI International or generate 25.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.19% |
Values | Daily Returns |
Clarivate Plc vs. CACI International
Performance |
Timeline |
Clarivate Plc |
CACI International |
Clarivate Plc and CACI International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clarivate Plc and CACI International
The main advantage of trading using opposite Clarivate Plc and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clarivate Plc 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.Clarivate Plc vs. CLARIVATE PLC | Clarivate Plc vs. Capital One Financial | Clarivate Plc vs. Babcock Wilcox Enterprises | Clarivate Plc vs. Cherry Hill Mortgage |
CACI International vs. EPAM Systems | CACI International vs. Infosys Ltd ADR | CACI International vs. Cognizant Technology Solutions | CACI International vs. FiscalNote Holdings |
Check out your portfolio center.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |