Correlation Between CSG Systems and Couchbase
Can any of the company-specific risk be diversified away by investing in both CSG Systems 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 CSG Systems and Couchbase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSG Systems International and Couchbase, you can compare the effects of market volatilities on CSG Systems 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 CSG Systems with a short position of Couchbase. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Couchbase.
Diversification Opportunities for CSG Systems and Couchbase
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSG and Couchbase is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase and CSG 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 CSG Systems International 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 CSG Systems i.e., CSG Systems and Couchbase go up and down completely randomly.
Pair Corralation between CSG Systems and Couchbase
Given the investment horizon of 90 days CSG Systems is expected to generate 10.35 times less return on investment than Couchbase. But when comparing it to its historical volatility, CSG Systems International is 2.59 times less risky than Couchbase. It trades about 0.05 of its potential returns per unit of risk. Couchbase is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,505 in Couchbase on April 13, 2025 and sell it today you would earn a total of 925.00 from holding Couchbase or generate 61.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. Couchbase
Performance |
| Timeline |
| CSG Systems International |
| Couchbase |
CSG Systems and Couchbase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and Couchbase
The main advantage of trading using opposite CSG Systems and Couchbase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems 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.| CSG Systems vs. Evertec | CSG Systems vs. Consensus Cloud Solutions | CSG Systems vs. Global Blue Group | CSG Systems vs. ExlService Holdings |
| Couchbase vs. EverCommerce | Couchbase vs. AvidXchange Holdings | Couchbase vs. Informatica | Couchbase vs. CS Disco LLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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