Correlation Analysis Between Microsoft and INTU

This module allows you to analyze existing cross correlation between Microsoft Corporation and INTU. You can compare the effects of market volatilities on Microsoft and INTU 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 INTU. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and INTU.
 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 3.02 times less return on investment than INTU. But when comparing it to its historical volatility, Microsoft Corporation is 1.2 times less risky than INTU. It trades about 0.09 of its potential returns per unit of risk. INTU is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  19,623  in INTU on May 23, 2018 and sell it today you would earn a total of  975.00  from holding INTU or generate 4.97% return on investment over 30 days.

Pair Corralation between Microsoft and INTU

0.88
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very 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 INTU 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 INTU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTU has no effect on the direction of Microsoft i.e. Microsoft and INTU go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Microsoft  
5 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.
INTU  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in INTU are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1155.48

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