Correlation Between DocuSign and Phunware

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

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

Diversification Opportunities for DocuSign and Phunware

-0.32

Correlation Coefficient

DocuSign  Phunware

Very good diversification

The 3 months correlation between DocuSign and Phunware is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding DocuSign and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware 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 Phunware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phunware has no effect on the direction of DocuSign i.e., DocuSign and Phunware go up and down completely randomly.

Pair Corralation between DocuSign and Phunware

Given the investment horizon of 90 days DocuSign is expected to generate 45.21 times less return on investment than Phunware. But when comparing it to its historical volatility, DocuSign is 1.4 times less risky than Phunware. It trades about 0.0 of its potential returns per unit of risk. Phunware is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  294.00  in Phunware on April 29, 2025 and sell it today you would earn a total of  27.00  from holding Phunware or generate 9.18% return on investment over 90 days.

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

DocuSign  vs.  Phunware

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.

Phunware

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phunware are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Phunware displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DocuSign and Phunware

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

The idea behind DocuSign and Phunware 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.