Correlation Between DocuSign and Aware

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

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

Diversification Opportunities for DocuSign and Aware

-0.43

Correlation Coefficient

DocuSign  Aware

Very good diversification

The 3 months correlation between DocuSign and Aware is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding DocuSign and Aware Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aware Inc and DocuSign 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 DocuSign are associated (or correlated) with Aware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aware Inc has no effect on the direction of DocuSign i.e., DocuSign and Aware go up and down completely randomly.

Pair Corralation between DocuSign and Aware

Given the investment horizon of 90 days DocuSign is expected to under-perform the Aware. In addition to that, DocuSign is 1.04 times more volatile than Aware Inc. It trades about -0.01 of its total potential returns per unit of risk. Aware Inc is currently generating about 0.24 per unit of volatility. If you would invest  156.00  in Aware Inc on May 2, 2025 and sell it today you would earn a total of  80.00  from holding Aware Inc or generate 51.28% return on investment over 90 days.

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

DocuSign  vs.  Aware Inc

DocuSign

Risk-Adjusted Performance

Very Weak

Over the last 90 days DocuSign has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, DocuSign is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Aware Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aware Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Aware exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DocuSign and Aware

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

The idea behind DocuSign and Aware Inc 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.