Correlation Between ServiceNow and Nemetschek
Can any of the company-specific risk be diversified away by investing in both ServiceNow and Nemetschek 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 Nemetschek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and Nemetschek SE, you can compare the effects of market volatilities on ServiceNow and Nemetschek 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 Nemetschek. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and Nemetschek.
Diversification Opportunities for ServiceNow and Nemetschek
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ServiceNow and Nemetschek is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and Nemetschek SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nemetschek SE 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 Nemetschek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nemetschek SE has no effect on the direction of ServiceNow i.e., ServiceNow and Nemetschek go up and down completely randomly.
Pair Corralation between ServiceNow and Nemetschek
Considering the 90-day investment horizon ServiceNow is expected to under-perform the Nemetschek. But the stock apears to be less risky and, when comparing its historical volatility, ServiceNow is 1.3 times less risky than Nemetschek. The stock trades about -0.05 of its potential returns per unit of risk. The Nemetschek SE is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 12,502 in Nemetschek SE on June 11, 2025 and sell it today you would earn a total of 3,771 from holding Nemetschek SE or generate 30.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
ServiceNow vs. Nemetschek SE
Performance |
| Timeline |
| ServiceNow |
| Nemetschek SE |
ServiceNow and Nemetschek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and Nemetschek
The main advantage of trading using opposite ServiceNow and Nemetschek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, Nemetschek 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 Nemetschek will offset losses from the drop in Nemetschek's long position.| ServiceNow vs. Intermap Technologies Corp | ServiceNow vs. Mobivity Holdings | ServiceNow vs. Duos Technologies Group | ServiceNow vs. Thrivent High Yield |
| Nemetschek vs. Nomura Research Institute | Nemetschek vs. The Sage Group | Nemetschek vs. The Sage Group | Nemetschek vs. WiseTech Global Limited |
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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