Correlation Between Repligen and ServiceNow
Can any of the company-specific risk be diversified away by investing in both Repligen and ServiceNow 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 Repligen and ServiceNow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and ServiceNow, you can compare the effects of market volatilities on Repligen and ServiceNow 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 Repligen with a short position of ServiceNow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and ServiceNow.
Diversification Opportunities for Repligen and ServiceNow
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Repligen and ServiceNow is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and ServiceNow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ServiceNow and Repligen 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 Repligen are associated (or correlated) with ServiceNow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ServiceNow has no effect on the direction of Repligen i.e., Repligen and ServiceNow go up and down completely randomly.
Pair Corralation between Repligen and ServiceNow
Given the investment horizon of 90 days Repligen is expected to generate 13.85 times less return on investment than ServiceNow. In addition to that, Repligen is 1.49 times more volatile than ServiceNow. It trades about 0.01 of its total potential returns per unit of risk. ServiceNow is currently generating about 0.11 per unit of volatility. If you would invest 38,852 in ServiceNow on August 28, 2024 and sell it today you would earn a total of 66,419 from holding ServiceNow or generate 170.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. ServiceNow
Performance |
| Timeline |
| Repligen |
| ServiceNow |
Repligen and ServiceNow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and ServiceNow
The main advantage of trading using opposite Repligen and ServiceNow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, ServiceNow 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 ServiceNow will offset losses from the drop in ServiceNow's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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