Correlation Between Fiserv and CACI International

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

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

Diversification Opportunities for Fiserv and CACI International

0.0

Correlation Coefficient

Fiserv  CACI International

Pay attention - limited upside

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

Pair Corralation between Fiserv and CACI International

If you would invest (100.00) in Fiserv Inc on January 9, 2025 and sell it today you would earn a total of  100.00  from holding Fiserv Inc 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

Fiserv Inc  vs.  CACI International

Fiserv Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fiserv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Fiserv is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated 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 latest uncertain performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Fiserv and CACI International

The main advantage of trading using opposite Fiserv and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiserv 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 Fiserv Inc 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.