Correlation Between Adobe Systems and DocuSign

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

By analyzing existing cross correlation between Adobe Systems Incorporated and DocuSign, you can compare the effects of market volatilities on Adobe Systems and DocuSign 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 Adobe Systems with a short position of DocuSign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adobe Systems and DocuSign.

Diversification Opportunities for Adobe Systems and DocuSign

0.73

Correlation Coefficient

Adobe Systems  DocuSign

Poor diversification

The 3 months correlation between Adobe and DocuSign is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Adobe Systems Incorporated and DocuSign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DocuSign and Adobe Systems 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 Adobe Systems Incorporated are associated (or correlated) with DocuSign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DocuSign has no effect on the direction of Adobe Systems i.e., Adobe Systems and DocuSign go up and down completely randomly.

Pair Corralation between Adobe Systems and DocuSign

Given the investment horizon of 90 days Adobe Systems Incorporated is expected to generate 0.51 times more return on investment than DocuSign. However, Adobe Systems Incorporated is 1.96 times less risky than DocuSign. It trades about -0.17 of its potential returns per unit of risk. DocuSign is currently generating about -0.13 per unit of risk. If you would invest  41,713  in Adobe Systems Incorporated on May 16, 2025 and sell it today you would lose (6,855) from holding Adobe Systems Incorporated or give up 16.43% of portfolio value over 90 days.

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

Adobe Systems Incorporated  vs.  DocuSign

Adobe Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days Adobe Systems Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

DocuSign

Risk-Adjusted Performance

Weakest

Over the last 90 days DocuSign 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 fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Adobe Systems and DocuSign

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

The idea behind Adobe Systems Incorporated and DocuSign 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.