Correlation Between Remitly Global and Couchbase
Can any of the company-specific risk be diversified away by investing in both Remitly Global 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 Remitly Global and Couchbase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remitly Global and Couchbase, you can compare the effects of market volatilities on Remitly Global 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 Remitly Global with a short position of Couchbase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remitly Global and Couchbase.
Diversification Opportunities for Remitly Global and Couchbase
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Remitly and Couchbase is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Remitly Global and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase and Remitly Global 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 Remitly Global 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 Remitly Global i.e., Remitly Global and Couchbase go up and down completely randomly.
Pair Corralation between Remitly Global and Couchbase
Given the investment horizon of 90 days Remitly Global is expected to generate 0.87 times more return on investment than Couchbase. However, Remitly Global is 1.15 times less risky than Couchbase. It trades about 0.06 of its potential returns per unit of risk. Couchbase is currently generating about 0.03 per unit of risk. If you would invest 1,463 in Remitly Global on November 19, 2024 and sell it today you would earn a total of 1,251 from holding Remitly Global or generate 85.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Remitly Global vs. Couchbase
Performance |
| Timeline |
| Remitly Global |
| Couchbase |
Remitly Global and Couchbase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remitly Global and Couchbase
The main advantage of trading using opposite Remitly Global and Couchbase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remitly Global 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.| Remitly Global vs. ACI Worldwide | Remitly Global vs. EverCommerce | Remitly Global vs. Global Blue Group | Remitly Global vs. CSG Systems International |
| Couchbase vs. Evertec | Couchbase vs. Flywire Corp | Couchbase vs. i3 Verticals | Couchbase vs. CSG Systems International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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