Correlation Between MicroStrategy Incorporated and Intuit

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

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

Diversification Opportunities for MicroStrategy Incorporated and Intuit

-0.18

Correlation Coefficient

MicroStrategy Incorporated  Intuit

Good diversification

The 3 months correlation between MicroStrategy and Intuit is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MicroStrategy Incorporated and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc and MicroStrategy Incorporated 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 MicroStrategy Incorporated are associated (or correlated) with Intuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuit Inc has no effect on the direction of MicroStrategy Incorporated i.e., MicroStrategy Incorporated and Intuit go up and down completely randomly.

Pair Corralation between MicroStrategy Incorporated and Intuit

Given the investment horizon of 90 days MicroStrategy Incorporated is expected to under-perform the Intuit. In addition to that, MicroStrategy Incorporated is 1.81 times more volatile than Intuit Inc. It trades about -0.05 of its total potential returns per unit of risk. Intuit Inc is currently generating about 0.07 per unit of volatility. If you would invest  66,995  in Intuit Inc on May 18, 2025 and sell it today you would earn a total of  4,679  from holding Intuit Inc or generate 6.98% return on investment over 90 days.

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

MicroStrategy Incorporated  vs.  Intuit Inc

MicroStrategy Incorporated

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroStrategy Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Intuit Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Intuit may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with MicroStrategy Incorporated and Intuit

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

The idea behind MicroStrategy Incorporated and Intuit 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.