Correlation Between ServiceNow and ONEOK
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By analyzing existing cross correlation between ServiceNow and ONEOK INC NEW, you can compare the effects of market volatilities on ServiceNow and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and ONEOK.
Diversification Opportunities for ServiceNow and ONEOK
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ServiceNow and ONEOK is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and ONEOK INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK INC NEW 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK INC NEW has no effect on the direction of ServiceNow i.e., ServiceNow and ONEOK go up and down completely randomly.
Pair Corralation between ServiceNow and ONEOK
Considering the 90-day investment horizon ServiceNow is expected to generate 0.52 times more return on investment than ONEOK. However, ServiceNow is 1.92 times less risky than ONEOK. It trades about 0.27 of its potential returns per unit of risk. ONEOK INC NEW is currently generating about 0.04 per unit of risk. If you would invest 103,601 in ServiceNow on September 12, 2024 and sell it today you would earn a total of 11,117 from holding ServiceNow or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
ServiceNow vs. ONEOK INC NEW
Performance |
| Timeline |
| ServiceNow |
| ONEOK INC NEW |
ServiceNow and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and ONEOK
The main advantage of trading using opposite ServiceNow and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK's long position.| ServiceNow vs. Meridianlink | ServiceNow vs. Enfusion | ServiceNow vs. PDF Solutions | ServiceNow vs. ePlus 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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