Correlation Between GOLDMAN and ServiceNow
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By analyzing existing cross correlation between GOLDMAN SACHS GROUP and ServiceNow, you can compare the effects of market volatilities on GOLDMAN 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 GOLDMAN with a short position of ServiceNow. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN and ServiceNow.
Diversification Opportunities for GOLDMAN and ServiceNow
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GOLDMAN and ServiceNow is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS GROUP and ServiceNow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ServiceNow and GOLDMAN 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 GOLDMAN SACHS GROUP 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 GOLDMAN i.e., GOLDMAN and ServiceNow go up and down completely randomly.
Pair Corralation between GOLDMAN and ServiceNow
Assuming the 90 days trading horizon GOLDMAN SACHS GROUP is expected to under-perform the ServiceNow. But the bond apears to be less risky and, when comparing its historical volatility, GOLDMAN SACHS GROUP is 1.58 times less risky than ServiceNow. The bond trades about -0.14 of its potential returns per unit of risk. The ServiceNow is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 95,459 in ServiceNow on September 4, 2024 and sell it today you would earn a total of 9,384 from holding ServiceNow or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
GOLDMAN SACHS GROUP vs. ServiceNow
Performance |
| Timeline |
| GOLDMAN SACHS GROUP |
| ServiceNow |
GOLDMAN and ServiceNow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDMAN and ServiceNow
The main advantage of trading using opposite GOLDMAN and ServiceNow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDMAN 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.The idea behind GOLDMAN SACHS GROUP and ServiceNow pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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