Correlation Between Intuit and Agent Information

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

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

Diversification Opportunities for Intuit and Agent Information

0.72

Correlation Coefficient

Intuit  Agent Information

Poor diversification

The 3 months correlation between Intuit and Agent is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Agent Information Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agent Information and Intuit 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 Intuit Inc are associated (or correlated) with Agent Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agent Information has no effect on the direction of Intuit i.e., Intuit and Agent Information go up and down completely randomly.

Pair Corralation between Intuit and Agent Information

Given the investment horizon of 90 days Intuit Inc is expected to generate 1.1 times more return on investment than Agent Information. However, Intuit is 1.1 times more volatile than Agent Information Software. It trades about -0.03 of its potential returns per unit of risk. Agent Information Software is currently generating about -0.19 per unit of risk. If you would invest  64,511  in Intuit Inc on December 25, 2024 and sell it today you would lose (3,202) from holding Intuit Inc or give up 4.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	93.65%
Values	Daily Returns

Intuit Inc  vs.  Agent Information Software

Intuit Inc

Risk-Adjusted Performance

Very Weak

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

Agent Information

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agent Information Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Intuit and Agent Information

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

The idea behind Intuit Inc and Agent Information Software 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.