Correlation Between Highland Global and DOCDATA

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

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

Diversification Opportunities for Highland Global and DOCDATA

-0.03

Correlation Coefficient

Highland Global  DOCDATA

Good diversification

The 3 months correlation between Highland and DOCDATA is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and DOCDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOCDATA and Highland Global 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 Highland Global Allocation are associated (or correlated) with DOCDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOCDATA has no effect on the direction of Highland Global i.e., Highland Global and DOCDATA go up and down completely randomly.

Pair Corralation between Highland Global and DOCDATA

Given the investment horizon of 90 days Highland Global Allocation is expected to generate 0.31 times more return on investment than DOCDATA. However, Highland Global Allocation is 3.22 times less risky than DOCDATA. It trades about 0.06 of its potential returns per unit of risk. DOCDATA is currently generating about -0.05 per unit of risk. If you would invest  820.00  in Highland Global Allocation on May 17, 2025 and sell it today you would earn a total of  30.00  from holding Highland Global Allocation or generate 3.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Highland Global Allocation  vs.  DOCDATA

Highland Global Allo

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong essential indicators, Highland Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

DOCDATA

Risk-Adjusted Performance

Weakest

Over the last 90 days DOCDATA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Highland Global and DOCDATA

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

The idea behind Highland Global Allocation and DOCDATA 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 Stocks Directory module to find actively traded stocks across global markets.