Correlation Between CSG Systems and Couchbase

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

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

Diversification Opportunities for CSG Systems and Couchbase

-0.38

Correlation Coefficient

CSG Systems  Couchbase

Very good diversification

The 3 months correlation between CSG and Couchbase is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase and CSG Systems 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 CSG Systems International 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 CSG Systems i.e., CSG Systems and Couchbase go up and down completely randomly.

Pair Corralation between CSG Systems and Couchbase

Given the investment horizon of 90 days CSG Systems International is expected to under-perform the Couchbase. But the stock apears to be less risky and, when comparing its historical volatility, CSG Systems International is 2.62 times less risky than Couchbase. The stock trades about -0.03 of its potential returns per unit of risk. The Couchbase is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,806  in Couchbase on May 28, 2025 and sell it today you would earn a total of  628.00  from holding Couchbase or generate 34.77% return on investment over 90 days.

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

CSG Systems International  vs.  Couchbase

CSG Systems International

Risk-Adjusted Performance

Weakest

Over the last 90 days CSG Systems International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CSG Systems is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

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 CSG Systems and Couchbase

The main advantage of trading using opposite CSG Systems and Couchbase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems 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 CSG Systems International 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.