Correlation Between Intuit and Bitech Technologies
Can any of the company-specific risk be diversified away by investing in both Intuit and Bitech Technologies 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 Bitech Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuit Inc and Bitech Technologies, you can compare the effects of market volatilities on Intuit and Bitech Technologies 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 Bitech Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and Bitech Technologies.
Diversification Opportunities for Intuit and Bitech Technologies
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intuit and Bitech is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Bitech Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitech Technologies 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 Bitech Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitech Technologies has no effect on the direction of Intuit i.e., Intuit and Bitech Technologies go up and down completely randomly.
Pair Corralation between Intuit and Bitech Technologies
Given the investment horizon of 90 days Intuit Inc is expected to generate 0.44 times more return on investment than Bitech Technologies. However, Intuit Inc is 2.27 times less risky than Bitech Technologies. It trades about 0.08 of its potential returns per unit of risk. Bitech Technologies is currently generating about 0.03 per unit of risk. If you would invest 61,209 in Intuit Inc on August 28, 2024 and sell it today you would earn a total of 2,253 from holding Intuit Inc or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuit Inc vs. Bitech Technologies
Performance |
| Timeline |
| Intuit Inc |
| Bitech Technologies |
Intuit and Bitech Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuit and Bitech Technologies
The main advantage of trading using opposite Intuit and Bitech Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, Bitech Technologies 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 Bitech Technologies will offset losses from the drop in Bitech Technologies' long position.The idea behind Intuit Inc and Bitech Technologies 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.| Bitech Technologies vs. Salesforce | Bitech Technologies vs. SAP SE ADR | Bitech Technologies vs. ServiceNow | Bitech Technologies vs. Intuit Inc |
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 the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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