Pair Correlation Between Microsoft and Intuit

This module allows you to analyze existing cross correlation between Microsoft Corporation and Intuit Inc. You can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of Intuit. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Intuit.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Microsoft Corp.  vs   Intuit Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft is expected to generate 4.4 times less return on investment than Intuit. In addition to that, Microsoft is 1.07 times more volatile than Intuit Inc. It trades about 0.01 of its total potential returns per unit of risk. Intuit Inc is currently generating about 0.06 per unit of volatility. If you would invest  16,846  in Intuit Inc on January 23, 2018 and sell it today you would earn a total of  364.00  from holding Intuit Inc or generate 2.16% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Microsoft and Intuit
0.79

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and Intuit Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc and Microsoft 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 Microsoft Corporation 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 Microsoft i.e. Microsoft and Intuit go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Microsoft

  
0 

Risk-Adjusted Performance

Over the last 30 days Microsoft Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Intuit Inc

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.