Correlation Between Intuit and Zscaler

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

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

Diversification Opportunities for Intuit and Zscaler

0.93

Correlation Coefficient

Intuit  Zscaler

Almost no diversification

The 3 months correlation between Intuit and Zscaler is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Zscaler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zscaler 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 Zscaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zscaler has no effect on the direction of Intuit i.e., Intuit and Zscaler go up and down completely randomly.

Pair Corralation between Intuit and Zscaler

Given the investment horizon of 90 days Intuit is expected to generate 1.01 times less return on investment than Zscaler. But when comparing it to its historical volatility, Intuit Inc is 1.29 times less risky than Zscaler. It trades about 0.27 of its potential returns per unit of risk. Zscaler is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  22,617  in Zscaler on April 30, 2025 and sell it today you would earn a total of  6,287  from holding Zscaler or generate 27.8% 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.  Zscaler

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.

Zscaler

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zscaler are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Zscaler unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuit and Zscaler

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

The idea behind Intuit Inc and Zscaler 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.