Correlation Between MongoDB and Cellebrite

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

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

Diversification Opportunities for MongoDB and Cellebrite

0.59

Correlation Coefficient

MongoDB  Cellebrite

Very weak diversification

The 3 months correlation between MongoDB and Cellebrite is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and Cellebrite DI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI 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 Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI has no effect on the direction of MongoDB i.e., MongoDB and Cellebrite go up and down completely randomly.

Pair Corralation between MongoDB and Cellebrite

Considering the 90-day investment horizon MongoDB is expected to under-perform the Cellebrite. In addition to that, MongoDB is 1.48 times more volatile than Cellebrite DI. It trades about -0.07 of its total potential returns per unit of risk. Cellebrite DI is currently generating about -0.05 per unit of volatility. If you would invest  2,202  in Cellebrite DI on December 30, 2024 and sell it today you would lose (256.00) from holding Cellebrite DI or give up 11.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

MongoDB  vs.  Cellebrite DI

MongoDB

Risk-Adjusted Performance

Very Weak

Over the last 90 days MongoDB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Cellebrite DI

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cellebrite DI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with MongoDB and Cellebrite

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

The idea behind MongoDB and Cellebrite DI 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.