Correlation Between Intuit and Par Technology

By analyzing existing cross correlation between Intuit Inc and Par Technology Corp, you can compare the effects of market volatilities on Intuit and Par 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 Par Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and Par Technology.

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

Diversification Opportunities for Intuit and Par Technology

0.43
  Correlation Coefficient
Intuit Inc
Par Technology Corp

Very weak diversification

The 3 months correlation between Intuit and Par Technology is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Par Technology Corp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Par Technology Corp 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 Par Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Technology Corp has no effect on the direction of Intuit i.e., Intuit and Par Technology go up and down completely randomly.

Pair Corralation between Intuit and Par Technology

Given the investment horizon of 90 days Intuit Inc is expected to generate 0.37 times more return on investment than Par Technology. However, Intuit Inc is 2.71 times less risky than Par Technology. It trades about 0.14 of its potential returns per unit of risk. Par Technology Corp is currently generating about -0.02 per unit of risk. If you would invest  41,318  in Intuit Inc on July 24, 2021 and sell it today you would earn a total of  16,517  from holding Intuit Inc or generate 39.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Intuit Inc  vs.  Par Technology Corp

 Performance (%) 
      Timeline 
Intuit Inc 
 Intuit Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Intuit may actually be approaching a critical reversion point that can send shares even higher in November 2021.

Intuit Price Channel

Par Technology Corp 
 Par Technology Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Par Technology Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Par Technology is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

Par Technology Price Channel

Intuit and Par Technology Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Intuit and Par Technology

The main advantage of trading using opposite Intuit and Par Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, Par 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 Par Technology will offset losses from the drop in Par Technology's long position.
The idea behind Intuit Inc and Par Technology Corp 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.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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