Correlation Between ServiceNow and WEMA BANK

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Can any of the company-specific risk be diversified away by investing in both ServiceNow and WEMA BANK 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 WEMA BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and WEMA BANK PLC, you can compare the effects of market volatilities on ServiceNow and WEMA BANK 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 WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and WEMA BANK.

Diversification Opportunities for ServiceNow and WEMA BANK

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between ServiceNow and WEMA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and WEMA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEMA BANK PLC 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 WEMA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEMA BANK PLC has no effect on the direction of ServiceNow i.e., ServiceNow and WEMA BANK go up and down completely randomly.

Pair Corralation between ServiceNow and WEMA BANK

Considering the 90-day investment horizon ServiceNow is expected to generate 0.52 times more return on investment than WEMA BANK. However, ServiceNow is 1.91 times less risky than WEMA BANK. It trades about -0.1 of its potential returns per unit of risk. WEMA BANK PLC is currently generating about -0.08 per unit of risk. If you would invest  91,938  in ServiceNow on September 3, 2025 and sell it today you would lose (9,731) from holding ServiceNow or give up 10.58% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.41%
ValuesDaily Returns

ServiceNow  vs.  WEMA BANK PLC

 Performance 
       Timeline  
ServiceNow 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ServiceNow has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
WEMA BANK PLC 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WEMA BANK PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

ServiceNow and WEMA BANK Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ServiceNow and WEMA BANK

The main advantage of trading using opposite ServiceNow and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, WEMA BANK 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 WEMA BANK will offset losses from the drop in WEMA BANK's long position.
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The idea behind ServiceNow and WEMA BANK PLC 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.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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