Correlation Between Intuit and SoftwareONE Holding

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

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

Diversification Opportunities for Intuit and SoftwareONE Holding

0.95

Correlation Coefficient

Intuit  SoftwareONE Holding

Almost no diversification

The 3 months correlation between Intuit and SoftwareONE is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and SoftwareONE Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftwareONE Holding 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 SoftwareONE Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftwareONE Holding has no effect on the direction of Intuit i.e., Intuit and SoftwareONE Holding go up and down completely randomly.

Pair Corralation between Intuit and SoftwareONE Holding

Given the investment horizon of 90 days Intuit is expected to generate 1.49 times less return on investment than SoftwareONE Holding. But when comparing it to its historical volatility, Intuit Inc is 2.07 times less risky than SoftwareONE Holding. It trades about 0.27 of its potential returns per unit of risk. SoftwareONE Holding AG is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  625.00  in SoftwareONE Holding AG on April 30, 2025 and sell it today you would earn a total of  260.00  from holding SoftwareONE Holding AG or generate 41.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Intuit Inc  vs.  SoftwareONE Holding AG

Intuit Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 21 (%) 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.

SoftwareONE Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SoftwareONE Holding AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, SoftwareONE Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuit and SoftwareONE Holding

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

The idea behind Intuit Inc and SoftwareONE Holding AG 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.