Correlation Between Couchbase and MongoDB

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

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

Diversification Opportunities for Couchbase and MongoDB

0.77

Correlation Coefficient

Couchbase  MongoDB

Poor diversification

The 3 months correlation between Couchbase and MongoDB is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Couchbase and MongoDB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MongoDB 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 MongoDB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MongoDB has no effect on the direction of Couchbase i.e., Couchbase and MongoDB go up and down completely randomly.

Pair Corralation between Couchbase and MongoDB

Given the investment horizon of 90 days Couchbase is expected to generate 1.56 times more return on investment than MongoDB. However, Couchbase is 1.56 times more volatile than MongoDB. It trades about 0.16 of its potential returns per unit of risk. MongoDB is currently generating about 0.22 per unit of risk. If you would invest  1,711  in Couchbase on April 29, 2025 and sell it today you would earn a total of  718.00  from holding Couchbase or generate 41.96% return on investment over 90 days.

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

Couchbase  vs.  MongoDB

Couchbase

Risk-Adjusted Performance

Good

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.

MongoDB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, MongoDB sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Couchbase and MongoDB

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

The idea behind Couchbase and MongoDB 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 Managers module to screen money managers from public funds and ETFs managed around the world.