Correlation Between DraftKings and DocuSign

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

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

Diversification Opportunities for DraftKings and DocuSign

-0.21

Correlation Coefficient

DraftKings  DocuSign

Very good diversification

The 3 months correlation between DraftKings and DocuSign is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding DraftKings and DocuSign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DocuSign and DraftKings 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 DraftKings 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 DraftKings i.e., DraftKings and DocuSign go up and down completely randomly.

Pair Corralation between DraftKings and DocuSign

Given the investment horizon of 90 days DraftKings is expected to generate 3.73 times less return on investment than DocuSign. But when comparing it to its historical volatility, DraftKings is 1.24 times less risky than DocuSign. It trades about 0.02 of its potential returns per unit of risk. DocuSign is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  7,736  in DocuSign on July 1, 2025 and sell it today you would earn a total of  416.00  from holding DocuSign or generate 5.38% return on investment over 90 days.

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

DraftKings  vs.  DocuSign

DraftKings

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in DraftKings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, DraftKings is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

DocuSign

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in DocuSign are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, DocuSign may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with DraftKings and DocuSign

The main advantage of trading using opposite DraftKings and DocuSign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DraftKings 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 DraftKings 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.