Correlation Between Verint Systems and MongoDB

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

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

Diversification Opportunities for Verint Systems and MongoDB

0.7

Correlation Coefficient

Verint Systems  MongoDB

Poor diversification

The 3 months correlation between Verint and MongoDB is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Verint Systems and MongoDB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MongoDB and Verint Systems 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 Verint Systems 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 Verint Systems i.e., Verint Systems and MongoDB go up and down completely randomly.

Pair Corralation between Verint Systems and MongoDB

Given the investment horizon of 90 days Verint Systems is expected to generate 1.6 times less return on investment than MongoDB. In addition to that, Verint Systems is 1.34 times more volatile than MongoDB. It trades about 0.1 of its total potential returns per unit of risk. MongoDB is currently generating about 0.22 per unit of volatility. If you would invest  17,469  in MongoDB on April 29, 2025 and sell it today you would earn a total of  6,668  from holding MongoDB or generate 38.17% return on investment over 90 days.

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

Verint Systems  vs.  MongoDB

Verint Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Verint Systems are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Verint Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

MongoDB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 17 (%) 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 Verint Systems and MongoDB

The main advantage of trading using opposite Verint Systems and MongoDB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verint Systems 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 Verint Systems 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.