Correlation Between DocuSign and Exela Technologies

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

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

Diversification Opportunities for DocuSign and Exela Technologies

-0.38

Correlation Coefficient

DocuSign  Exela Technologies

Very good diversification

The 3 months correlation between DocuSign and Exela is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding DocuSign and Exela Technologies Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies 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 Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of DocuSign i.e., DocuSign and Exela Technologies go up and down completely randomly.

Pair Corralation between DocuSign and Exela Technologies

Given the investment horizon of 90 days DocuSign is expected to generate 0.48 times more return on investment than Exela Technologies. However, DocuSign is 2.07 times less risky than Exela Technologies. It trades about 0.1 of its potential returns per unit of risk. Exela Technologies Preferred is currently generating about -0.36 per unit of risk. If you would invest  7,178  in DocuSign on October 21, 2024 and sell it today you would earn a total of  1,782  from holding DocuSign or generate 24.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	29.03%
Values	Daily Returns

DocuSign  vs.  Exela Technologies Preferred

DocuSign

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DocuSign are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, DocuSign unveiled solid returns over the last few months and may actually be approaching a breakup point.

Exela Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exela Technologies Preferred has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with DocuSign and Exela Technologies

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

The idea behind DocuSign and Exela Technologies Preferred 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.