Correlation Between Couchbase and Expensify

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

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

Diversification Opportunities for Couchbase and Expensify

-0.18

Correlation Coefficient

Couchbase  Expensify

Good diversification

The 3 months correlation between Couchbase and Expensify is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Couchbase and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify 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 Expensify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expensify has no effect on the direction of Couchbase i.e., Couchbase and Expensify go up and down completely randomly.

Pair Corralation between Couchbase and Expensify

Given the investment horizon of 90 days Couchbase is expected to generate 0.9 times more return on investment than Expensify. However, Couchbase is 1.11 times less risky than Expensify. It trades about 0.15 of its potential returns per unit of risk. Expensify is currently generating about -0.1 per unit of risk. If you would invest  1,747  in Couchbase on May 7, 2025 and sell it today you would earn a total of  681.00  from holding Couchbase or generate 38.98% return on investment over 90 days.

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

Couchbase  vs.  Expensify

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.

Expensify

Risk-Adjusted Performance

Weakest

Over the last 90 days Expensify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Couchbase and Expensify

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

The idea behind Couchbase and Expensify 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.