Correlation Between ServiceNow and Gencor Industries
Can any of the company-specific risk be diversified away by investing in both ServiceNow and Gencor Industries 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 Gencor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and Gencor Industries, you can compare the effects of market volatilities on ServiceNow and Gencor Industries 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 Gencor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and Gencor Industries.
Diversification Opportunities for ServiceNow and Gencor Industries
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ServiceNow and Gencor is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and Gencor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencor Industries 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 Gencor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gencor Industries has no effect on the direction of ServiceNow i.e., ServiceNow and Gencor Industries go up and down completely randomly.
Pair Corralation between ServiceNow and Gencor Industries
Considering the 90-day investment horizon ServiceNow is expected to generate 0.68 times more return on investment than Gencor Industries. However, ServiceNow is 1.48 times less risky than Gencor Industries. It trades about -0.09 of its potential returns per unit of risk. Gencor Industries is currently generating about -0.15 per unit of risk. If you would invest 93,933 in ServiceNow on September 8, 2025 and sell it today you would lose (8,497) from holding ServiceNow or give up 9.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ServiceNow vs. Gencor Industries
Performance |
| Timeline |
| ServiceNow |
| Gencor Industries |
ServiceNow and Gencor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and Gencor Industries
The main advantage of trading using opposite ServiceNow and Gencor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, Gencor Industries 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 Gencor Industries will offset losses from the drop in Gencor Industries' long position.| ServiceNow vs. Intuit Inc | ServiceNow vs. Applovin Corp | ServiceNow vs. Uber Technologies | ServiceNow vs. Shopify |
| Gencor Industries vs. Diana Shipping | Gencor Industries vs. Alta Equipment Group | Gencor Industries vs. Franklin Covey | Gencor Industries vs. SCHMID Group NV |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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