Correlation Between DOCDATA and ATON GREEN

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

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

Diversification Opportunities for DOCDATA and ATON GREEN

0.09

Correlation Coefficient

DOCDATA  ATON GREEN

Significant diversification

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

Pair Corralation between DOCDATA and ATON GREEN

Assuming the 90 days trading horizon DOCDATA is expected to generate 10.39 times less return on investment than ATON GREEN. But when comparing it to its historical volatility, DOCDATA is 1.41 times less risky than ATON GREEN. It trades about 0.02 of its potential returns per unit of risk. ATON GREEN STORAGE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  153.00  in ATON GREEN STORAGE on April 24, 2025 and sell it today you would earn a total of  52.00  from holding ATON GREEN STORAGE or generate 33.99% return on investment over 90 days.

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

DOCDATA  vs.  ATON GREEN STORAGE

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.

ATON GREEN STORAGE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATON GREEN STORAGE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ATON GREEN reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DOCDATA and ATON GREEN

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

The idea behind DOCDATA and ATON GREEN STORAGE 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.