Correlation Between CACI International and VNET Group

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

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

Diversification Opportunities for CACI International and VNET Group

-0.4

Correlation Coefficient

CACI International  VNET Group

Very good diversification

The 3 months correlation between CACI and VNET is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CACI International and VNET Group DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VNET Group DRC 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 VNET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VNET Group DRC has no effect on the direction of CACI International i.e., CACI International and VNET Group go up and down completely randomly.

Pair Corralation between CACI International and VNET Group

Given the investment horizon of 90 days CACI International is expected to generate 0.32 times more return on investment than VNET Group. However, CACI International is 3.17 times less risky than VNET Group. It trades about 0.2 of its potential returns per unit of risk. VNET Group DRC is currently generating about -0.01 per unit of risk. If you would invest  36,692  in CACI International on March 31, 2025 and sell it today you would earn a total of  9,645  from holding CACI International or generate 26.29% return on investment over 90 days.

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

CACI International  vs.  VNET Group DRC

CACI International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CACI International are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental indicators, CACI International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

VNET Group DRC

Risk-Adjusted Performance

Very Weak

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

Pair Trading with CACI International and VNET Group

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

The idea behind CACI International and VNET Group DRC 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 .