Correlation Between MongoDB and AvidXchange Holdings

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

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

Diversification Opportunities for MongoDB and AvidXchange Holdings

0.43

Correlation Coefficient

MongoDB  AvidXchange Holdings

Very weak diversification

The 3 months correlation between MongoDB and AvidXchange is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and AvidXchange Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AvidXchange Holdings and MongoDB 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 MongoDB are associated (or correlated) with AvidXchange Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AvidXchange Holdings has no effect on the direction of MongoDB i.e., MongoDB and AvidXchange Holdings go up and down completely randomly.

Pair Corralation between MongoDB and AvidXchange Holdings

Considering the 90-day investment horizon MongoDB is expected to generate 21.86 times more return on investment than AvidXchange Holdings. However, MongoDB is 21.86 times more volatile than AvidXchange Holdings. It trades about 0.07 of its potential returns per unit of risk. AvidXchange Holdings is currently generating about 0.22 per unit of risk. If you would invest  18,901  in MongoDB on May 17, 2025 and sell it today you would earn a total of  1,842  from holding MongoDB or generate 9.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

MongoDB  vs.  AvidXchange Holdings

MongoDB

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 5 (%) 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.

AvidXchange Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AvidXchange Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, AvidXchange Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MongoDB and AvidXchange Holdings

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

The idea behind MongoDB and AvidXchange Holdings 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.