Correlation Between ServiceNow and Goodrx Holdings
Can any of the company-specific risk be diversified away by investing in both ServiceNow and Goodrx Holdings 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 Goodrx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and Goodrx Holdings, you can compare the effects of market volatilities on ServiceNow and Goodrx Holdings 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 Goodrx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and Goodrx Holdings.
Diversification Opportunities for ServiceNow and Goodrx Holdings
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ServiceNow and Goodrx is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and Goodrx Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodrx Holdings 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 Goodrx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodrx Holdings has no effect on the direction of ServiceNow i.e., ServiceNow and Goodrx Holdings go up and down completely randomly.
Pair Corralation between ServiceNow and Goodrx Holdings
Considering the 90-day investment horizon ServiceNow is expected to generate 0.4 times more return on investment than Goodrx Holdings. However, ServiceNow is 2.49 times less risky than Goodrx Holdings. It trades about -0.08 of its potential returns per unit of risk. Goodrx Holdings is currently generating about -0.16 per unit of risk. If you would invest 89,856 in ServiceNow on September 4, 2025 and sell it today you would lose (7,649) from holding ServiceNow or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ServiceNow vs. Goodrx Holdings
Performance |
| Timeline |
| ServiceNow |
| Goodrx Holdings |
ServiceNow and Goodrx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and Goodrx Holdings
The main advantage of trading using opposite ServiceNow and Goodrx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, Goodrx Holdings 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 Goodrx Holdings will offset losses from the drop in Goodrx Holdings' long position.| ServiceNow vs. ABN AMRO Bank | ServiceNow vs. BV Financial, Common | ServiceNow vs. Perseus Mining Limited | ServiceNow vs. Copperbank Resources Corp |
| Goodrx Holdings vs. Apparel Manufacturing Associates | Goodrx Holdings vs. China Outfitters Holdings | Goodrx Holdings vs. Sun Country Airlines | Goodrx Holdings vs. Aegean Airlines SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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