A characteristic feature of quasars is the observed non-linear relationship
between their monochromatic luminosities at rest-frame 2500 {\AA} and 2 keV.
This relationship is evident across all redshifts and luminosities and, due to
its non-linearity, can be implemented to estimate quasar distances and
construct a Hubble Diagram for quasars. Historically, a significant challenge
in the cosmological application of this relation has been its high observed
dispersion. Recent studies have demonstrated that this dispersion can be
reduced by excluding biased objects from the sample. Nevertheless, the
dispersion remains considerable (δ∼0.20 dex), especially when
compared to the Phillips relation for supernovae Ia. Given the absence of a
comprehensive physical model for the relation, it remains unclear how much of
the remaining dispersion is intrinsically tied to the relation itself and how
much can be attributed to observational factors not addressed by the sample
selection and by the choice of X-ray and UV indicators. Potential contributing
factors include (i) the scatter produced by using X-ray photometric results
instead of spectroscopic ones, (ii) the intrinsic variability of quasars, and
(iii) the inclination of the accretion disc relative to our line of sight. In
this study, we thoroughly examine these three factors and quantify their
individual contributions to the observed dispersion. Based on our findings, we
argue that the intrinsic dispersion of the X-ray/UV luminosity relation is
likely below 0.06 dex. We also discuss why high-redshift subsamples can show a
significantly lower dispersion than the average one