Correlation Between Intuit and Inuvo

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

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

Diversification Opportunities for Intuit and Inuvo

0.28

Correlation Coefficient

Intuit  Inuvo

Modest diversification

The 3 months correlation between Intuit and Inuvo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Inuvo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inuvo 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 Inuvo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inuvo Inc has no effect on the direction of Intuit i.e., Intuit and Inuvo go up and down completely randomly.

Pair Corralation between Intuit and Inuvo

Given the investment horizon of 90 days Intuit is expected to generate 1.36 times less return on investment than Inuvo. But when comparing it to its historical volatility, Intuit Inc is 3.59 times less risky than Inuvo. It trades about 0.22 of its potential returns per unit of risk. Inuvo Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  400.00  in Inuvo Inc on May 4, 2025 and sell it today you would earn a total of  86.00  from holding Inuvo Inc or generate 21.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intuit Inc  vs.  Inuvo Inc

Intuit Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Intuit unveiled solid returns over the last few months and may actually be approaching a breakup point.

Inuvo Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Inuvo Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Inuvo showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuit and Inuvo

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

The idea behind Intuit Inc and Inuvo 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.