Correlation Between Elastic NV and MongoDB

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

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

Diversification Opportunities for Elastic NV and MongoDB

-0.25

Correlation Coefficient

Elastic NV  MongoDB

Very good diversification

The 3 months correlation between Elastic and MongoDB is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Elastic NV and MongoDB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MongoDB and Elastic NV 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 Elastic NV 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 Elastic NV i.e., Elastic NV and MongoDB go up and down completely randomly.

Pair Corralation between Elastic NV and MongoDB

Given the investment horizon of 90 days Elastic NV is expected to under-perform the MongoDB. But the stock apears to be less risky and, when comparing its historical volatility, Elastic NV is 1.16 times less risky than MongoDB. The stock trades about -0.13 of its potential returns per unit of risk. The MongoDB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  19,161  in MongoDB on May 11, 2025 and sell it today you would earn a total of  1,757  from holding MongoDB or generate 9.17% return on investment over 90 days.

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

Elastic NV  vs.  MongoDB

Elastic NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Elastic NV 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 basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

MongoDB

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, MongoDB may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Elastic NV and MongoDB

The main advantage of trading using opposite Elastic NV and MongoDB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elastic NV 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 Elastic NV 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.