Correlation Between NCino and Intuit
Can any of the company-specific risk be diversified away by investing in both NCino 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 NCino and Intuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between nCino Inc and Intuit Inc, you can compare the effects of market volatilities on NCino 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 NCino with a short position of Intuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCino and Intuit.
Diversification Opportunities for NCino and Intuit
Very weak diversification
The 3 months correlation between NCino and Intuit is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding nCino Inc and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc and NCino 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 nCino Inc 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 NCino i.e., NCino and Intuit go up and down completely randomly.
Pair Corralation between NCino and Intuit
Given the investment horizon of 90 days nCino Inc is expected to generate 0.81 times more return on investment than Intuit. However, nCino Inc is 1.23 times less risky than Intuit. It trades about 0.32 of its potential returns per unit of risk. Intuit Inc is currently generating about 0.08 per unit of risk. If you would invest 3,682 in nCino Inc on September 3, 2024 and sell it today you would earn a total of 517.00 from holding nCino Inc or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
nCino Inc vs. Intuit Inc
Performance |
| Timeline |
| nCino Inc |
| Intuit Inc |
NCino and Intuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCino and Intuit
The main advantage of trading using opposite NCino and Intuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCino 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.| NCino vs. Clearwater Analytics Holdings | NCino vs. Meridianlink | NCino vs. Envestnet | NCino vs. Bigcommerce Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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