Correlation Between F5 Networks and MongoDB

Can any of the company-specific risk be diversified away by investing in both F5 Networks 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 F5 Networks and MongoDB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between F5 Networks and MongoDB, you can compare the effects of market volatilities on F5 Networks 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 F5 Networks with a short position of MongoDB. Check out your portfolio center. Please also check ongoing floating volatility patterns of F5 Networks and MongoDB.

Diversification Opportunities for F5 Networks and MongoDB

0.61

Correlation Coefficient

F5 Networks  MongoDB

Poor diversification

The 3 months correlation between FFIV and MongoDB is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding F5 Networks and MongoDB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MongoDB and F5 Networks 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 F5 Networks 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 F5 Networks i.e., F5 Networks and MongoDB go up and down completely randomly.

Pair Corralation between F5 Networks and MongoDB

Given the investment horizon of 90 days F5 Networks is expected to generate 1.64 times less return on investment than MongoDB. But when comparing it to its historical volatility, F5 Networks is 2.14 times less risky than MongoDB. It trades about 0.12 of its potential returns per unit of risk. MongoDB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  18,901  in MongoDB on May 18, 2025 and sell it today you would earn a total of  2,925  from holding MongoDB or generate 15.48% return on investment over 90 days.

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

F5 Networks  vs.  MongoDB

F5 Networks

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in F5 Networks are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, F5 Networks may actually be approaching a critical reversion point that can send shares even higher in September 2025.

MongoDB

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 7 (%) 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 F5 Networks and MongoDB

The main advantage of trading using opposite F5 Networks and MongoDB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F5 Networks 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 F5 Networks 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.