Correlation Between ServiceNow and Citrix Systems
Can any of the company-specific risk be diversified away by investing in both ServiceNow and Citrix Systems 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 Citrix Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServiceNow and Citrix Systems, you can compare the effects of market volatilities on ServiceNow and Citrix Systems 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 Citrix Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and Citrix Systems.
Diversification Opportunities for ServiceNow and Citrix Systems
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ServiceNow and Citrix is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and Citrix Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citrix Systems 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 Citrix Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citrix Systems has no effect on the direction of ServiceNow i.e., ServiceNow and Citrix Systems go up and down completely randomly.
Pair Corralation between ServiceNow and Citrix Systems
If you would invest 10,390 in Citrix Systems on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Citrix Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ServiceNow vs. Citrix Systems
Performance |
| Timeline |
| ServiceNow |
| Citrix Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ServiceNow and Citrix Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServiceNow and Citrix Systems
The main advantage of trading using opposite ServiceNow and Citrix Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, Citrix Systems 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 Citrix Systems will offset losses from the drop in Citrix Systems' long position.| ServiceNow vs. Autodesk | ServiceNow vs. Intuit Inc | ServiceNow vs. Zoom Video Communications | ServiceNow vs. Snowflake |
| Citrix Systems vs. Coupang LLC | Citrix Systems vs. BRP Inc | Citrix Systems vs. Cedar Realty Trust | Citrix Systems vs. Grocery Outlet Holding |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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