Correlation Between Alkami Technology and Couchbase

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

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

Diversification Opportunities for Alkami Technology and Couchbase

0.11

Correlation Coefficient

Alkami Technology  Couchbase

Average diversification

The 3 months correlation between Alkami and Couchbase is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Alkami Technology and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase and Alkami Technology 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 Alkami Technology are associated (or correlated) with Couchbase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Couchbase has no effect on the direction of Alkami Technology i.e., Alkami Technology and Couchbase go up and down completely randomly.

Pair Corralation between Alkami Technology and Couchbase

Given the investment horizon of 90 days Alkami Technology is expected to under-perform the Couchbase. In addition to that, Alkami Technology is 4.74 times more volatile than Couchbase. It trades about -0.1 of its total potential returns per unit of risk. Couchbase is currently generating about -0.06 per unit of volatility. If you would invest  2,439  in Couchbase on July 10, 2025 and sell it today you would lose (67.00) from holding Couchbase or give up 2.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Alkami Technology  vs.  Couchbase

Alkami Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Alkami Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Couchbase

Risk-Adjusted Performance

Weakest

Over the last 90 days Couchbase has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Couchbase is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Alkami Technology and Couchbase

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

The idea behind Alkami Technology and Couchbase 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.