Correlation Between Samsara and Couchbase

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

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

Diversification Opportunities for Samsara and Couchbase

-0.67

Correlation Coefficient

Samsara  Couchbase

Excellent diversification

The 3 months correlation between Samsara and Couchbase is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Samsara and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase and Samsara 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 Samsara 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 Samsara i.e., Samsara and Couchbase go up and down completely randomly.

Pair Corralation between Samsara and Couchbase

Considering the 90-day investment horizon Samsara is expected to under-perform the Couchbase. But the stock apears to be less risky and, when comparing its historical volatility, Samsara is 1.82 times less risky than Couchbase. The stock trades about -0.05 of its potential returns per unit of risk. The Couchbase is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,759  in Couchbase on May 2, 2025 and sell it today you would earn a total of  667.00  from holding Couchbase or generate 37.92% return on investment over 90 days.

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

Samsara  vs.  Couchbase

Samsara

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samsara has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm 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 Samsara and Couchbase

The main advantage of trading using opposite Samsara and Couchbase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsara 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 Samsara 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.