Correlation Between ServiceNow and Intuit
Can any of the company-specific risk be diversified away by investing in both ServiceNow and Intuit 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 Intuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and Intuit Inc, you can compare the effects of market volatilities on ServiceNow and Intuit 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 Intuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and Intuit.
Diversification Opportunities for ServiceNow and Intuit
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ServiceNow and Intuit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc 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 Intuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuit Inc has no effect on the direction of ServiceNow i.e., ServiceNow and Intuit go up and down completely randomly.
Pair Corralation between ServiceNow and Intuit
Considering the 90-day investment horizon ServiceNow is expected to under-perform the Intuit. But the stock apears to be less risky and, when comparing its historical volatility, ServiceNow is 1.91 times less risky than Intuit. The stock trades about -0.14 of its potential returns per unit of risk. The Intuit Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 65,998 in Intuit Inc on March 22, 2025 and sell it today you would earn a total of 9,871 from holding Intuit Inc or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
ServiceNow vs. Intuit Inc
Performance |
| Timeline |
| ServiceNow |
| Intuit Inc |
ServiceNow and Intuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and Intuit
The main advantage of trading using opposite ServiceNow and Intuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, Intuit 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 Intuit will offset losses from the drop in Intuit's long position.| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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