Correlation Between LiveVox Holdings and Couchbase

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

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

Diversification Opportunities for LiveVox Holdings and Couchbase

-0.22

Correlation Coefficient

LiveVox Holdings  Couchbase

Very good diversification

The 3 months correlation between LiveVox and Couchbase is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding LiveVox Holdings and Couchbase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Couchbase and LiveVox Holdings 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 LiveVox Holdings 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 LiveVox Holdings i.e., LiveVox Holdings and Couchbase go up and down completely randomly.

Pair Corralation between LiveVox Holdings and Couchbase

If you would invest  1,552  in Couchbase on September 12, 2024 and sell it today you would earn a total of  35.00  from holding Couchbase or generate 2.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.3%
Values	Daily Returns

LiveVox Holdings  vs.  Couchbase

LiveVox Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LiveVox Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, LiveVox Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Couchbase

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Couchbase are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Couchbase may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with LiveVox Holdings and Couchbase

The main advantage of trading using opposite LiveVox Holdings and Couchbase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiveVox Holdings 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.

The idea behind LiveVox Holdings and Couchbase 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 CEOs Directory module to screen CEOs from public companies around the world.