Correlation Between Intuit and BASE
Can any of the company-specific risk be diversified away by investing in both Intuit and BASE 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 BASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuit Inc and BASE Inc, you can compare the effects of market volatilities on Intuit and BASE 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 BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and BASE.
Diversification Opportunities for Intuit and BASE
Poor diversification
The 3 months correlation between Intuit and BASE is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc 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 BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of Intuit i.e., Intuit and BASE go up and down completely randomly.
Pair Corralation between Intuit and BASE
Given the investment horizon of 90 days Intuit Inc is expected to generate 0.44 times more return on investment than BASE. However, Intuit Inc is 2.25 times less risky than BASE. It trades about -0.13 of its potential returns per unit of risk. BASE Inc is currently generating about -0.07 per unit of risk. If you would invest 74,935 in Intuit Inc on July 16, 2025 and sell it today you would lose (9,219) from holding Intuit Inc or give up 12.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuit Inc vs. BASE Inc
Performance |
| Timeline |
| Intuit Inc |
| BASE Inc |
Intuit and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuit and BASE
The main advantage of trading using opposite Intuit and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, BASE 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 BASE will offset losses from the drop in BASE's long position.The idea behind Intuit Inc and BASE 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.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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