Pair Correlation Between Intuit and Microsoft

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

Pair Volatility

Given the investment horizon of 30 days, Intuit Inc is expected to generate 0.48 times more return on investment than Microsoft. However, Intuit Inc is 2.07 times less risky than Microsoft. It trades about 0.45 of its potential returns per unit of risk. Microsoft Corporation is currently generating about 0.15 per unit of risk. If you would invest  14,732  in Intuit Inc on October 22, 2017 and sell it today you would earn a total of  1,046  from holding Intuit Inc or generate 7.1% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Intuit and Microsoft
0.64

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 Intuit Inc and Microsoft Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Intuit i.e. Intuit and Microsoft go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Intuit Inc

  
29 

Risk-Adjusted Performance

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

Microsoft

  
10 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.