Correlation Between DocuSign and My Size

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

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

Diversification Opportunities for DocuSign and My Size

0.52

Correlation Coefficient

DocuSign  My Size

Very weak diversification

The 3 months correlation between DocuSign and MYSZ is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DocuSign and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size 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 My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of DocuSign i.e., DocuSign and My Size go up and down completely randomly.

Pair Corralation between DocuSign and My Size

Given the investment horizon of 90 days DocuSign is expected to generate 0.31 times more return on investment than My Size. However, DocuSign is 3.18 times less risky than My Size. It trades about -0.04 of its potential returns per unit of risk. My Size is currently generating about -0.12 per unit of risk. If you would invest  9,170  in DocuSign on December 29, 2024 and sell it today you would lose (852.00) from holding DocuSign or give up 9.29% of portfolio value over 90 days.

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

DocuSign  vs.  My Size

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 latest unsteady performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

My Size

Risk-Adjusted Performance

Very Weak

Over the last 90 days My Size has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with DocuSign and My Size

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

The idea behind DocuSign and My Size 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.