Correlation Between Couchbase and CSG Systems

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Couchbase and CSG Systems 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 Couchbase and CSG Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Couchbase and CSG Systems International, you can compare the effects of market volatilities on Couchbase and CSG Systems 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 Couchbase with a short position of CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Couchbase and CSG Systems.

Diversification Opportunities for Couchbase and CSG Systems

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Couchbase and CSG is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Couchbase and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International and Couchbase 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 Couchbase are associated (or correlated) with CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of Couchbase i.e., Couchbase and CSG Systems go up and down completely randomly.

Pair Corralation between Couchbase and CSG Systems

Given the investment horizon of 90 days Couchbase is expected to generate 2.45 times more return on investment than CSG Systems. However, Couchbase is 2.45 times more volatile than CSG Systems International. It trades about 0.16 of its potential returns per unit of risk. CSG Systems International is currently generating about 0.09 per unit of risk. If you would invest  1,707  in Couchbase on April 25, 2025 and sell it today you would earn a total of  718.00  from holding Couchbase or generate 42.06% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Couchbase  vs.  CSG Systems International

 Performance 
       Timeline  
Couchbase 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Couchbase are ranked lower than 12 (%) 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.
CSG Systems International 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CSG Systems International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, CSG Systems may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Couchbase and CSG Systems Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Couchbase and CSG Systems

The main advantage of trading using opposite Couchbase and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Couchbase position performs unexpectedly, CSG Systems 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 CSG Systems will offset losses from the drop in CSG Systems' long position.
The idea behind Couchbase and CSG Systems International 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.
Check out your portfolio center.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
AI Portfolio Prophet
Use AI to generate optimal portfolios and find profitable investment opportunities
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Transaction History
View history of all your transactions and understand their impact on performance
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes