Correlation Between PAR Technology and Intuit

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

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

Diversification Opportunities for PAR Technology and Intuit

0.53

Correlation Coefficient

PAR Technology  Intuit

Very weak diversification

The 3 months correlation between PAR and Intuit is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding PAR Technology and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc and PAR Technology 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 PAR Technology 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 Inc has no effect on the direction of PAR Technology i.e., PAR Technology and Intuit go up and down completely randomly.

Pair Corralation between PAR Technology and Intuit

Considering the 90-day investment horizon PAR Technology is expected to under-perform the Intuit. In addition to that, PAR Technology is 1.73 times more volatile than Intuit Inc. It trades about -0.08 of its total potential returns per unit of risk. Intuit Inc is currently generating about -0.03 per unit of volatility. If you would invest  65,607  in Intuit Inc on February 11, 2024 and sell it today you would lose (2,376) from holding Intuit Inc or give up 3.62% of portfolio value over 90 days.

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

PAR Technology  vs.  Intuit Inc

PAR Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PAR Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in June 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Intuit Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intuit Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Intuit is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PAR Technology and Intuit

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

The idea behind PAR Technology and Intuit 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.