Correlation Between Critic Clothing and CACI International
Can any of the company-specific risk be diversified away by investing in both Critic Clothing 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 Critic Clothing and CACI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Critic Clothing and CACI International, you can compare the effects of market volatilities on Critic Clothing 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 Critic Clothing with a short position of CACI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critic Clothing and CACI International.
Diversification Opportunities for Critic Clothing and CACI International
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Critic and CACI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Critic Clothing and CACI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CACI International and Critic Clothing 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 Critic Clothing 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 Critic Clothing i.e., Critic Clothing and CACI International go up and down completely randomly.
Pair Corralation between Critic Clothing and CACI International
Given the investment horizon of 90 days Critic Clothing is expected to generate 1.55 times more return on investment than CACI International. However, Critic Clothing is 1.55 times more volatile than CACI International. It trades about 0.12 of its potential returns per unit of risk. CACI International is currently generating about 0.18 per unit of risk. If you would invest 0.48 in Critic Clothing on September 6, 2025 and sell it today you would earn a total of 0.12 from holding Critic Clothing or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Critic Clothing vs. CACI International
Performance |
| Timeline |
| Critic Clothing |
| CACI International |
Critic Clothing and CACI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Critic Clothing and CACI International
The main advantage of trading using opposite Critic Clothing and CACI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Critic Clothing 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.| Critic Clothing vs. Asure Software | Critic Clothing vs. Pintec Technology Holdings | Critic Clothing vs. NETCLASS TECHNOLOGY INC | Critic Clothing vs. Kingdee International Software |
| CACI International vs. Sterling Construction | CACI International vs. Critic Clothing | CACI International vs. China Outfitters Holdings | CACI International vs. Future Farm Technologies |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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