Correlation Between ServiceNow and LogProstyle

Can any of the company-specific risk be diversified away by investing in both ServiceNow and LogProstyle 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 LogProstyle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ServiceNow and LogProstyle, you can compare the effects of market volatilities on ServiceNow and LogProstyle 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 LogProstyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServiceNow and LogProstyle.

Diversification Opportunities for ServiceNow and LogProstyle

0.38

Correlation Coefficient

ServiceNow  LogProstyle

Weak diversification

The 3 months correlation between ServiceNow and LogProstyle is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and LogProstyle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogProstyle 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 LogProstyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogProstyle has no effect on the direction of ServiceNow i.e., ServiceNow and LogProstyle go up and down completely randomly.

Pair Corralation between ServiceNow and LogProstyle

Considering the 90-day investment horizon ServiceNow is expected to under-perform the LogProstyle. But the stock apears to be less risky and, when comparing its historical volatility, ServiceNow is 2.82 times less risky than LogProstyle. The stock trades about 0.0 of its potential returns per unit of risk. The LogProstyle is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  107.00  in LogProstyle on July 23, 2025 and sell it today you would earn a total of  4.00  from holding LogProstyle or generate 3.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ServiceNow  vs.  LogProstyle

ServiceNow

Risk-Adjusted Performance

Weakest

Over the last 90 days ServiceNow has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, ServiceNow is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

LogProstyle

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LogProstyle are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, LogProstyle may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with ServiceNow and LogProstyle

The main advantage of trading using opposite ServiceNow and LogProstyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServiceNow position performs unexpectedly, LogProstyle 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 LogProstyle will offset losses from the drop in LogProstyle's long position.

The idea behind ServiceNow and LogProstyle 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.