Correlation Analysis Between Microsoft and Intuit

This module allows you to analyze existing cross correlation between Microsoft Corporation and Intuit. 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.
Horizon     30 Days    Login   to change
Symbolsvs

Microsoft Corp.  vs.  Intuit

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft is expected to generate 1.75 times less return on investment than Intuit. But when comparing it to its historical volatility, Microsoft Corporation is 1.08 times less risky than Intuit. It trades about 0.27 of its potential returns per unit of risk. Intuit is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest  20,740  in Intuit on August 20, 2018 and sell it today you would earn a total of  2,078  from holding Intuit or generate 10.02% return on investment over 30 days.

Pair Corralation between Microsoft and Intuit

-0.37
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy91.67%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and Intuit in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Intuit 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 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  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.
Intuit  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Intuit are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.

My Equities

My Current Equities and Potential Positions

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1161.22

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