Correlation Between ServiceNow and IGEN Networks
Can any of the company-specific risk be diversified away by investing in both ServiceNow and IGEN Networks 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 IGEN Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and IGEN Networks Corp, you can compare the effects of market volatilities on ServiceNow and IGEN Networks 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 IGEN Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and IGEN Networks.
Diversification Opportunities for ServiceNow and IGEN Networks
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ServiceNow and IGEN is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and IGEN Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGEN Networks Corp 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 IGEN Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGEN Networks Corp has no effect on the direction of ServiceNow i.e., ServiceNow and IGEN Networks go up and down completely randomly.
Pair Corralation between ServiceNow and IGEN Networks
If you would invest 95,308 in ServiceNow on August 30, 2024 and sell it today you would earn a total of 8,832 from holding ServiceNow or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ServiceNow vs. IGEN Networks Corp
Performance |
| Timeline |
| ServiceNow |
| IGEN Networks Corp |
ServiceNow and IGEN Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and IGEN Networks
The main advantage of trading using opposite ServiceNow and IGEN Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, IGEN Networks 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 IGEN Networks will offset losses from the drop in IGEN Networks' long position.| ServiceNow vs. Alkami Technology | ServiceNow vs. ADEIA P | ServiceNow vs. Paycor HCM | ServiceNow vs. Envestnet |
| IGEN Networks vs. Salesforce | IGEN Networks vs. SAP SE ADR | IGEN Networks vs. ServiceNow | IGEN Networks vs. Intuit Inc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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