Correlation Between Intuit and Fortinet
Can any of the company-specific risk be diversified away by investing in both Intuit and Fortinet 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 Fortinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuit Inc and Fortinet, you can compare the effects of market volatilities on Intuit and Fortinet 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 Fortinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and Fortinet.
Diversification Opportunities for Intuit and Fortinet
Pay attention - limited upside
The 3 months correlation between Intuit and Fortinet is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Fortinet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortinet 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 Fortinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortinet has no effect on the direction of Intuit i.e., Intuit and Fortinet go up and down completely randomly.
Pair Corralation between Intuit and Fortinet
Assuming the 90 days horizon Intuit Inc is expected to generate 1.65 times more return on investment than Fortinet. However, Intuit is 1.65 times more volatile than Fortinet. It trades about 0.01 of its potential returns per unit of risk. Fortinet is currently generating about -0.32 per unit of risk. If you would invest 56,600 in Intuit Inc on December 11, 2024 and sell it today you would lose (70.00) from holding Intuit Inc or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuit Inc vs. Fortinet
Performance |
| Timeline |
| Intuit Inc |
| Fortinet |
Intuit and Fortinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuit and Fortinet
The main advantage of trading using opposite Intuit and Fortinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, Fortinet 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 Fortinet will offset losses from the drop in Fortinet's long position.| Intuit vs. ZURICH INSURANCE GROUP | Intuit vs. Aegean Airlines SA | Intuit vs. JAPAN AIRLINES | Intuit vs. Selective Insurance Group |
| Fortinet vs. FLOW TRADERS LTD | Fortinet vs. Tradeweb Markets | Fortinet vs. Indutrade AB | Fortinet vs. Fast Retailing Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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