Correlation Between RETAIL FOOD and Intuit

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

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

Diversification Opportunities for RETAIL FOOD and Intuit

0.81

Correlation Coefficient

RETAIL FOOD  Intuit

Very poor diversification

The 3 months correlation between RETAIL and Intuit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc and RETAIL FOOD 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 RETAIL FOOD GROUP are associated (or correlated) with Intuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuit Inc has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and Intuit go up and down completely randomly.

Pair Corralation between RETAIL FOOD and Intuit

Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Intuit. In addition to that, RETAIL FOOD is 1.45 times more volatile than Intuit Inc. It trades about -0.13 of its total potential returns per unit of risk. Intuit Inc is currently generating about -0.07 per unit of volatility. If you would invest  61,485  in Intuit Inc on December 21, 2024 and sell it today you would lose (6,655) from holding Intuit Inc or give up 10.82% of portfolio value over 90 days.

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

RETAIL FOOD GROUP  vs.  Intuit Inc

RETAIL FOOD GROUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days RETAIL FOOD GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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. 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 RETAIL FOOD and Intuit

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

The idea behind RETAIL FOOD GROUP and Intuit Inc 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.