Correlation Between Domo and Asana

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

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

Diversification Opportunities for Domo and Asana

-0.09

Correlation Coefficient

Domo  Asana

Good diversification

The 3 months correlation between Domo and Asana is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Domo Inc and Asana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asana Inc and Domo 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 Domo Inc are associated (or correlated) with Asana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asana Inc has no effect on the direction of Domo i.e., Domo and Asana go up and down completely randomly.

Pair Corralation between Domo and Asana

Given the investment horizon of 90 days Domo Inc is expected to generate 0.74 times more return on investment than Asana. However, Domo Inc is 1.35 times less risky than Asana. It trades about 0.08 of its potential returns per unit of risk. Asana Inc is currently generating about -0.09 per unit of risk. If you would invest  722.00  in Domo Inc on December 28, 2024 and sell it today you would earn a total of  104.00  from holding Domo Inc or generate 14.4% return on investment over 90 days.

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

Domo Inc  vs.  Asana Inc

Domo Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Domo Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Domo displayed solid returns over the last few months and may actually be approaching a breakup point.

Asana Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asana Inc 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Domo and Asana

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

The idea behind Domo Inc and Asana 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.