Correlation Between ServiceNow and LOWES
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By analyzing existing cross correlation between ServiceNow and LOWES PANIES INC, you can compare the effects of market volatilities on ServiceNow and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and LOWES.
Diversification Opportunities for ServiceNow and LOWES
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ServiceNow and LOWES is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of ServiceNow i.e., ServiceNow and LOWES go up and down completely randomly.
Pair Corralation between ServiceNow and LOWES
Considering the 90-day investment horizon ServiceNow is expected to generate 9.57 times more return on investment than LOWES. However, ServiceNow is 9.57 times more volatile than LOWES PANIES INC. It trades about 0.08 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about 0.01 per unit of risk. If you would invest 42,226 in ServiceNow on December 4, 2024 and sell it today you would earn a total of 46,974 from holding ServiceNow or generate 111.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ServiceNow vs. LOWES PANIES INC
Performance |
| Timeline |
| ServiceNow |
| LOWES PANIES INC |
ServiceNow and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and LOWES
The main advantage of trading using opposite ServiceNow and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| ServiceNow vs. Autodesk | ServiceNow vs. Intuit Inc | ServiceNow vs. Zoom Video Communications | ServiceNow vs. Snowflake |
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 CEOs Directory module to screen CEOs from public companies around the world.
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