Correlation Between ServiceNow and Canadian Imperial

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

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

Diversification Opportunities for ServiceNow and Canadian Imperial

-0.68

Correlation Coefficient

ServiceNow  Canadian Imperial

Excellent diversification

The 3 months correlation between ServiceNow and Canadian is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ServiceNow and Canadian Imperial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Imperial Bank 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 Canadian Imperial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Imperial Bank has no effect on the direction of ServiceNow i.e., ServiceNow and Canadian Imperial go up and down completely randomly.

Pair Corralation between ServiceNow and Canadian Imperial

Considering the 90-day investment horizon ServiceNow is expected to under-perform the Canadian Imperial. In addition to that, ServiceNow is 2.02 times more volatile than Canadian Imperial Bank. It trades about -0.14 of its total potential returns per unit of risk. Canadian Imperial Bank is currently generating about 0.25 per unit of volatility. If you would invest  7,953  in Canadian Imperial Bank on September 16, 2025 and sell it today you would earn a total of  1,369  from holding Canadian Imperial Bank or generate 17.21% return on investment over 90 days.

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

ServiceNow  vs.  Canadian Imperial Bank

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 uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Canadian Imperial Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Imperial Bank are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Canadian Imperial displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ServiceNow and Canadian Imperial

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

The idea behind ServiceNow and Canadian Imperial Bank 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.