Correlation Between Intapp and Key Tronic

Can any of the company-specific risk be diversified away by investing in both Intapp and Key Tronic 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 Intapp and Key Tronic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intapp Inc and Key Tronic, you can compare the effects of market volatilities on Intapp and Key Tronic 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 Intapp with a short position of Key Tronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intapp and Key Tronic.

Diversification Opportunities for Intapp and Key Tronic

-0.39

Correlation Coefficient

Intapp  Key Tronic

Very good diversification

The 3 months correlation between Intapp and Key is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Intapp Inc and Key Tronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Key Tronic and Intapp 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 Intapp Inc are associated (or correlated) with Key Tronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Key Tronic has no effect on the direction of Intapp i.e., Intapp and Key Tronic go up and down completely randomly.

Pair Corralation between Intapp and Key Tronic

Given the investment horizon of 90 days Intapp Inc is expected to under-perform the Key Tronic. But the stock apears to be less risky and, when comparing its historical volatility, Intapp Inc is 1.45 times less risky than Key Tronic. The stock trades about -0.2 of its potential returns per unit of risk. The Key Tronic is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  248.00  in Key Tronic on April 29, 2025 and sell it today you would earn a total of  56.00  from holding Key Tronic or generate 22.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intapp Inc  vs.  Key Tronic

Intapp Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intapp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Key Tronic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Key Tronic are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent fundamental indicators, Key Tronic exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intapp and Key Tronic

The main advantage of trading using opposite Intapp and Key Tronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intapp position performs unexpectedly, Key Tronic 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 Key Tronic will offset losses from the drop in Key Tronic's long position.

The idea behind Intapp Inc and Key Tronic 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.

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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.