Correlation Between Intuit and Logiq

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

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

Diversification Opportunities for Intuit and Logiq

-0.03

Correlation Coefficient

Intuit  Logiq

Good diversification

The 3 months correlation between Intuit and Logiq is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and Logiq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logiq 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 Logiq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logiq Inc has no effect on the direction of Intuit i.e., Intuit and Logiq go up and down completely randomly.

Pair Corralation between Intuit and Logiq

Given the investment horizon of 90 days Intuit Inc is expected to generate 0.19 times more return on investment than Logiq. However, Intuit Inc is 5.32 times less risky than Logiq. It trades about 0.03 of its potential returns per unit of risk. Logiq Inc is currently generating about -0.06 per unit of risk. If you would invest  62,044  in Intuit Inc on September 5, 2024 and sell it today you would earn a total of  1,558  from holding Intuit Inc or generate 2.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Intuit Inc  vs.  Logiq Inc

Intuit Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Intuit is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Logiq Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Logiq Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Intuit and Logiq

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

The idea behind Intuit Inc and Logiq 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.