Correlation Between CiT and Intapp

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

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

Diversification Opportunities for CiT and Intapp

0.1

Correlation Coefficient

CiT  Intapp

Average diversification

The 3 months correlation between CiT and Intapp is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Intapp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intapp Inc and CiT 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 CiT Inc are associated (or correlated) with Intapp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intapp Inc has no effect on the direction of CiT i.e., CiT and Intapp go up and down completely randomly.

Pair Corralation between CiT and Intapp

Given the investment horizon of 90 days CiT Inc is expected to generate 3.12 times more return on investment than Intapp. However, CiT is 3.12 times more volatile than Intapp Inc. It trades about 0.43 of its potential returns per unit of risk. Intapp Inc is currently generating about -0.33 per unit of risk. If you would invest  346.00  in CiT Inc on March 19, 2024 and sell it today you would earn a total of  143.00  from holding CiT Inc or generate 41.33% return on investment over 90 days.

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

CiT Inc  vs.  Intapp Inc

CiT Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CiT Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, CiT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Intapp Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intapp Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Intapp is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CiT and Intapp

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

The idea behind CiT Inc and Intapp 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.