Correlation Between Intuit and 3M

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Intuit and 3M 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 3M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuit Inc and 3M Company, you can compare the effects of market volatilities on Intuit and 3M 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 3M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuit and 3M.

Diversification Opportunities for Intuit and 3M

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between Intuit and 3M is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Intuit Inc and 3M Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M Company 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 3M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M Company has no effect on the direction of Intuit i.e., Intuit and 3M go up and down completely randomly.

Pair Corralation between Intuit and 3M

Given the investment horizon of 90 days Intuit Inc is expected to generate 1.69 times more return on investment than 3M. However, Intuit is 1.69 times more volatile than 3M Company. It trades about 0.02 of its potential returns per unit of risk. 3M Company is currently generating about -0.02 per unit of risk. If you would invest  36,791  in Intuit Inc on August 28, 2022 and sell it today you would earn a total of  2,456  from holding Intuit Inc or generate 6.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Intuit Inc  vs.  3M Company

 Performance (%) 
       Timeline  
Intuit Inc 
Intuit Performance
0 of 100
Over the last 90 days Intuit Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Intuit Price Channel

3M Company 
3M Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in 3M Company are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady primary indicators, 3M is not utilizing all of its potentials. The new stock price chaos, may contribute to medium-term losses for the stakeholders.

3M Price Channel

Intuit and 3M Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intuit and 3M

The main advantage of trading using opposite Intuit and 3M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuit position performs unexpectedly, 3M 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 3M will offset losses from the drop in 3M's long position.
Intuit vs. Adobe Systems
Intuit vs. Caci International
Intuit vs. Check Point Software
Intuit vs. Amdocs Limited
The idea behind Intuit Inc and 3M Company 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.
3M vs. Carlisle Companies
3M vs. Emerson Electric
3M vs. Eaton Corp
3M vs. Fortive Corp
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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go