Correlation Between MongoDB and Pure Storage

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

By analyzing existing cross correlation between MongoDB and Pure Storage, you can compare the effects of market volatilities on MongoDB and Pure Storage 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 Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of MongoDB and Pure Storage.

Diversification Opportunities for MongoDB and Pure Storage

0.71

Correlation Coefficient

MongoDB  Pure Storage

Poor diversification

The 3 months correlation between MongoDB and Pure is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage 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 Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of MongoDB i.e., MongoDB and Pure Storage go up and down completely randomly.

Pair Corralation between MongoDB and Pure Storage

Considering the 90-day investment horizon MongoDB is expected to generate 1.2 times more return on investment than Pure Storage. However, MongoDB is 1.2 times more volatile than Pure Storage. It trades about 0.12 of its potential returns per unit of risk. Pure Storage is currently generating about 0.07 per unit of risk. If you would invest  19,161  in MongoDB on May 10, 2025 and sell it today you would earn a total of  3,625  from holding MongoDB or generate 18.92% return on investment over 90 days.

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

MongoDB  vs.  Pure Storage

MongoDB

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 9 (%) 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.

Pure Storage

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Pure Storage are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Pure Storage may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with MongoDB and Pure Storage

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

The idea behind MongoDB and Pure Storage 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.