Correlation Between Caseys General and Amdocs

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

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

Diversification Opportunities for Caseys General and Amdocs

-0.73

Correlation Coefficient

Caseys General  Amdocs

Pay attention - limited upside

The 3 months correlation between Caseys and Amdocs is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Amdocs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amdocs Limited and Caseys General 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 Caseys General Stores are associated (or correlated) with Amdocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amdocs Limited has no effect on the direction of Caseys General i.e., Caseys General and Amdocs go up and down completely randomly.

Pair Corralation between Caseys General and Amdocs

Assuming the 90 days trading horizon Caseys General Stores is expected to generate 1.61 times more return on investment than Amdocs. However, Caseys General is 1.61 times more volatile than Amdocs Limited. It trades about 0.12 of its potential returns per unit of risk. Amdocs Limited is currently generating about -0.08 per unit of risk. If you would invest  37,759  in Caseys General Stores on May 15, 2025 and sell it today you would earn a total of  6,041  from holding Caseys General Stores or generate 16.0% return on investment over 90 days.

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

Caseys General Stores  vs.  Amdocs Limited

Caseys General Stores

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Caseys General Stores are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Caseys General unveiled solid returns over the last few months and may actually be approaching a breakup point.

Amdocs Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Caseys General and Amdocs

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

The idea behind Caseys General Stores and Amdocs Limited 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.