Correlation Between ALEFARM BREWING and MongoDB

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

By analyzing existing cross correlation between ALEFARM BREWING DK 05 and MongoDB, you can compare the effects of market volatilities on ALEFARM BREWING and MongoDB 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 ALEFARM BREWING with a short position of MongoDB. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALEFARM BREWING and MongoDB.

Diversification Opportunities for ALEFARM BREWING and MongoDB

-0.54

Correlation Coefficient

ALEFARM BREWING  MongoDB

Excellent diversification

The 3 months correlation between ALEFARM and MongoDB is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ALEFARM BREWING DK 05 and MongoDB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MongoDB and ALEFARM BREWING 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 ALEFARM BREWING DK 05 are associated (or correlated) with MongoDB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MongoDB has no effect on the direction of ALEFARM BREWING i.e., ALEFARM BREWING and MongoDB go up and down completely randomly.

Pair Corralation between ALEFARM BREWING and MongoDB

Assuming the 90 days horizon ALEFARM BREWING DK 05 is expected to under-perform the MongoDB. In addition to that, ALEFARM BREWING is 1.65 times more volatile than MongoDB. It trades about -0.01 of its total potential returns per unit of risk. MongoDB is currently generating about 0.15 per unit of volatility. If you would invest  15,190  in MongoDB on April 24, 2025 and sell it today you would earn a total of  3,892  from holding MongoDB or generate 25.62% return on investment over 90 days.

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

ALEFARM BREWING DK 05  vs.  MongoDB

ALEFARM BREWING DK

Risk-Adjusted Performance

Very Weak

Over the last 90 days ALEFARM BREWING DK 05 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ALEFARM BREWING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

MongoDB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MongoDB reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALEFARM BREWING and MongoDB

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

The idea behind ALEFARM BREWING DK 05 and MongoDB 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.