Correlation Between MongoDB and SILEON AB

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

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

Diversification Opportunities for MongoDB and SILEON AB

0.13

Correlation Coefficient

MongoDB  SILEON AB

Average diversification

The 3 months correlation between MongoDB and SILEON is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and SILEON AB ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SILEON AB ON 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 SILEON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SILEON AB ON has no effect on the direction of MongoDB i.e., MongoDB and SILEON AB go up and down completely randomly.

Pair Corralation between MongoDB and SILEON AB

Assuming the 90 days horizon MongoDB is expected to generate 0.56 times more return on investment than SILEON AB. However, MongoDB is 1.8 times less risky than SILEON AB. It trades about 0.21 of its potential returns per unit of risk. SILEON AB ON is currently generating about -0.76 per unit of risk. If you would invest  23,285  in MongoDB on October 23, 2024 and sell it today you would earn a total of  1,515  from holding MongoDB or generate 6.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

MongoDB  vs.  SILEON AB ON

MongoDB

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MongoDB may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SILEON AB ON

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in SILEON AB ON are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SILEON AB reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MongoDB and SILEON AB

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

The idea behind MongoDB and SILEON AB ON 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 Valuation module to check real value of public entities based on technical and fundamental data.