  We investigate a compact source of entanglement. This device is composed of a
pair of linearly coupled nonlinear waveguides operating by means of degenerate
parametric downconversion. For the vacuum state at the input the generalized
squeeze variance and logarithmic negativity are used to quantify the amount of
nonclassicality and entanglement of output beams. Squeezing and entanglement
generation for various dynamical regimes of the device are discussed.
