Correlation Between YieldMax AMZN and Couchbase

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

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

Diversification Opportunities for YieldMax AMZN and Couchbase

0.83

Correlation Coefficient

YieldMax AMZN  Couchbase

Very poor diversification

The 3 months correlation between YieldMax and Couchbase is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax AMZN Option and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase and YieldMax AMZN 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 YieldMax AMZN Option 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 YieldMax AMZN i.e., YieldMax AMZN and Couchbase go up and down completely randomly.

Pair Corralation between YieldMax AMZN and Couchbase

Given the investment horizon of 90 days YieldMax AMZN is expected to generate 4.4 times less return on investment than Couchbase. But when comparing it to its historical volatility, YieldMax AMZN Option is 2.89 times less risky than Couchbase. It trades about 0.09 of its potential returns per unit of risk. Couchbase is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,808  in Couchbase on May 10, 2025 and sell it today you would earn a total of  624.00  from holding Couchbase or generate 34.51% return on investment over 90 days.

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

YieldMax AMZN Option  vs.  Couchbase

YieldMax AMZN Option

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax AMZN Option are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YieldMax AMZN may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Couchbase

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Couchbase are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Couchbase exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YieldMax AMZN and Couchbase

The main advantage of trading using opposite YieldMax AMZN and Couchbase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax AMZN 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 YieldMax AMZN Option 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.