Correlation Between TEN SQUARE and DOCDATA

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

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

Diversification Opportunities for TEN SQUARE and DOCDATA

0.14

Correlation Coefficient

TEN SQUARE  DOCDATA

Average diversification

The 3 months correlation between TEN and DOCDATA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and DOCDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOCDATA and TEN SQUARE 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 TEN SQUARE GAMES 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 TEN SQUARE i.e., TEN SQUARE and DOCDATA go up and down completely randomly.

Pair Corralation between TEN SQUARE and DOCDATA

Assuming the 90 days horizon TEN SQUARE GAMES is expected to generate 0.79 times more return on investment than DOCDATA. However, TEN SQUARE GAMES is 1.27 times less risky than DOCDATA. It trades about 0.03 of its potential returns per unit of risk. DOCDATA is currently generating about 0.02 per unit of risk. If you would invest  1,813  in TEN SQUARE GAMES on April 24, 2025 and sell it today you would earn a total of  59.00  from holding TEN SQUARE GAMES or generate 3.25% return on investment over 90 days.

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

TEN SQUARE GAMES  vs.  DOCDATA

TEN SQUARE GAMES

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TEN SQUARE GAMES are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, TEN SQUARE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

DOCDATA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DOCDATA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, DOCDATA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with TEN SQUARE and DOCDATA

The main advantage of trading using opposite TEN SQUARE and DOCDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE 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 TEN SQUARE GAMES 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.