Correlation Between Intuit and Aspen Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Intuit and Aspen Technology 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 Intuit and Aspen Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuit Inc and Aspen Technology, you can compare the effects of market volatilities on Intuit and Aspen Technology 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 Aspen Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and Aspen Technology.

Diversification Opportunities for Intuit and Aspen Technology

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Intuit and Aspen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Aspen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Technology 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 Aspen Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Technology has no effect on the direction of Intuit i.e., Intuit and Aspen Technology go up and down completely randomly.

Pair Corralation between Intuit and Aspen Technology

Given the investment horizon of 90 days Intuit Inc is expected to generate 1.3 times more return on investment than Aspen Technology. However, Intuit is 1.3 times more volatile than Aspen Technology. It trades about 0.14 of its potential returns per unit of risk. Aspen Technology is currently generating about -0.11 per unit of risk. If you would invest  39,434  in Intuit Inc on November 4, 2022 and sell it today you would earn a total of  5,782  from holding Intuit Inc or generate 14.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Intuit Inc  vs.  Aspen Technology

 Performance (%) 
       Timeline  
Intuit Inc 
Intuit Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Intuit unveiled solid returns over the last few months and may actually be approaching a breakup point.

Intuit Price Channel

Aspen Technology 
Aspen Performance
0 of 100
Over the last 90 days Aspen Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Aspen Price Channel

Intuit and Aspen Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intuit and Aspen Technology

The main advantage of trading using opposite Intuit and Aspen Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, Aspen Technology 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 Aspen Technology will offset losses from the drop in Aspen Technology's long position.
Intuit vs. STMicroelectronics NV
Intuit vs. 1st Federal Savings
Intuit vs. Bonso Electronics International
Intuit vs. PennantPark Investment
The idea behind Intuit Inc and Aspen Technology 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.
Aspen Technology vs. American Airlines Group
Aspen Technology vs. Bridgford Foods
Aspen Technology vs. Altisource Asset Management
Aspen Technology vs. United Microelectronics
Check out your portfolio center. 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Fundamental Analysis
View fundamental data based on most recent published financial statements
Equity Valuation
Check real value of public entities based on technical and fundamental data
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings