Correlation Between Couchbase and Riskified
Can any of the company-specific risk be diversified away by investing in both Couchbase and Riskified 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 Couchbase and Riskified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Couchbase and Riskified, you can compare the effects of market volatilities on Couchbase and Riskified 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 Couchbase with a short position of Riskified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Couchbase and Riskified.
Diversification Opportunities for Couchbase and Riskified
Good diversification
The 3 months correlation between Couchbase and Riskified is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Couchbase and Riskified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riskified and Couchbase 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 Couchbase are associated (or correlated) with Riskified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riskified has no effect on the direction of Couchbase i.e., Couchbase and Riskified go up and down completely randomly.
Pair Corralation between Couchbase and Riskified
Given the investment horizon of 90 days Couchbase is expected to generate 1.21 times more return on investment than Riskified. However, Couchbase is 1.21 times more volatile than Riskified. It trades about 0.03 of its potential returns per unit of risk. Riskified is currently generating about 0.02 per unit of risk. If you would invest 1,290 in Couchbase on September 26, 2024 and sell it today you would earn a total of 260.00 from holding Couchbase or generate 20.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Couchbase vs. Riskified
Performance |
Timeline |
Couchbase |
Riskified |
Couchbase and Riskified Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Couchbase and Riskified
The main advantage of trading using opposite Couchbase and Riskified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Couchbase position performs unexpectedly, Riskified 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 Riskified will offset losses from the drop in Riskified's long position.Couchbase vs. Evertec | Couchbase vs. Flywire Corp | Couchbase vs. i3 Verticals | Couchbase vs. CSG Systems International |
Riskified vs. Dubber Limited | Riskified vs. Advanced Health Intelligence | Riskified vs. Danavation Technologies Corp | Riskified vs. BASE Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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