Correlation Between Intuit and Coinsilium

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

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

Diversification Opportunities for Intuit and Coinsilium

0.42

Correlation Coefficient

Intuit  Coinsilium

Very weak diversification

The 3 months correlation between Intuit and Coinsilium is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Coinsilium Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coinsilium Group 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 Coinsilium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinsilium Group has no effect on the direction of Intuit i.e., Intuit and Coinsilium go up and down completely randomly.

Pair Corralation between Intuit and Coinsilium

Given the investment horizon of 90 days Intuit is expected to generate 18.33 times less return on investment than Coinsilium. But when comparing it to its historical volatility, Intuit Inc is 12.17 times less risky than Coinsilium. It trades about 0.07 of its potential returns per unit of risk. Coinsilium Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1.30  in Coinsilium Group on September 12, 2024 and sell it today you would earn a total of  3.55  from holding Coinsilium Group or generate 273.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Intuit Inc  vs.  Coinsilium Group

Intuit Inc

Risk-Adjusted Performance

0 of 100

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.

Coinsilium Group

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coinsilium Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Coinsilium reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuit and Coinsilium

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

The idea behind Intuit Inc and Coinsilium Group 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.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.