Correlation Between Intuit and Amphenol
Can any of the company-specific risk be diversified away by investing in both Intuit and Amphenol 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 Amphenol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuit Inc and Amphenol, you can compare the effects of market volatilities on Intuit and Amphenol 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 Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and Amphenol.
Diversification Opportunities for Intuit and Amphenol
Good diversification
The 3 months correlation between Intuit and Amphenol is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol 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 Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Intuit i.e., Intuit and Amphenol go up and down completely randomly.
Pair Corralation between Intuit and Amphenol
Given the investment horizon of 90 days Intuit Inc is expected to under-perform the Amphenol. But the stock apears to be less risky and, when comparing its historical volatility, Intuit Inc is 1.52 times less risky than Amphenol. The stock trades about -0.01 of its potential returns per unit of risk. The Amphenol is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 10,998 in Amphenol on August 27, 2025 and sell it today you would earn a total of 2,790 from holding Amphenol or generate 25.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuit Inc vs. Amphenol
Performance |
| Timeline |
| Intuit Inc |
| Amphenol |
Intuit and Amphenol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuit and Amphenol
The main advantage of trading using opposite Intuit and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.| Intuit vs. SoftwareONE Holding AG | Intuit vs. Smith Micro Software | Intuit vs. Vantage Drilling International | Intuit vs. Precision Drilling |
| Amphenol vs. Universal Music Group | Amphenol vs. ITT Educational Services | Amphenol vs. National Rural Utilities | Amphenol vs. Zane Interactive Publishing |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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