Correlation Between Intuit and Salesforce

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

By analyzing existing cross correlation between Intuit Inc and Salesforce, you can compare the effects of market volatilities on Intuit and Salesforce 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 Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and Salesforce.

Diversification Opportunities for Intuit and Salesforce

0.67

Correlation Coefficient

Intuit  Salesforce

Poor diversification

The 3 months correlation between Intuit and Salesforce is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce 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 Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce has no effect on the direction of Intuit i.e., Intuit and Salesforce go up and down completely randomly.

Pair Corralation between Intuit and Salesforce

Given the investment horizon of 90 days Intuit Inc is expected to under-perform the Salesforce. But the stock apears to be less risky and, when comparing its historical volatility, Intuit Inc is 1.14 times less risky than Salesforce. The stock trades about -0.14 of its potential returns per unit of risk. The Salesforce is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  27,317  in Salesforce on July 8, 2025 and sell it today you would lose (3,281) from holding Salesforce or give up 12.01% 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.  Salesforce

Intuit Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Intuit Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Salesforce

Risk-Adjusted Performance

Weakest

Over the last 90 days Salesforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Intuit and Salesforce

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

The idea behind Intuit Inc and Salesforce 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..