Correlation Between ServiceNow and Ehave
Can any of the company-specific risk be diversified away by investing in both ServiceNow and Ehave 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 ServiceNow and Ehave into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and Ehave Inc, you can compare the effects of market volatilities on ServiceNow and Ehave 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 ServiceNow with a short position of Ehave. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and Ehave.
Diversification Opportunities for ServiceNow and Ehave
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ServiceNow and Ehave is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and Ehave Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehave Inc and ServiceNow 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 ServiceNow are associated (or correlated) with Ehave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ehave Inc has no effect on the direction of ServiceNow i.e., ServiceNow and Ehave go up and down completely randomly.
Pair Corralation between ServiceNow and Ehave
Considering the 90-day investment horizon ServiceNow is expected to generate 102.65 times less return on investment than Ehave. But when comparing it to its historical volatility, ServiceNow is 119.9 times less risky than Ehave. It trades about 0.29 of its potential returns per unit of risk. Ehave Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Ehave Inc on August 28, 2024 and sell it today you would earn a total of 0.05 from holding Ehave Inc or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ServiceNow vs. Ehave Inc
Performance |
| Timeline |
| ServiceNow |
| Ehave Inc |
ServiceNow and Ehave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and Ehave
The main advantage of trading using opposite ServiceNow and Ehave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, Ehave 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 Ehave will offset losses from the drop in Ehave's long position.| ServiceNow vs. Alkami Technology | ServiceNow vs. ADEIA P | ServiceNow vs. Paycor HCM | ServiceNow vs. Envestnet |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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