Correlation Between HubSpot and Coheris SA

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

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

Diversification Opportunities for HubSpot and Coheris SA

0.65

Correlation Coefficient

HubSpot  Coheris SA

Poor diversification

The 3 months correlation between HubSpot and Coheris is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and Coheris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coheris SA and HubSpot 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 HubSpot are associated (or correlated) with Coheris SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coheris SA has no effect on the direction of HubSpot i.e., HubSpot and Coheris SA go up and down completely randomly.

Pair Corralation between HubSpot and Coheris SA

Assuming the 90 days horizon HubSpot is expected to under-perform the Coheris SA. In addition to that, HubSpot is 1.17 times more volatile than Coheris SA. It trades about -0.11 of its total potential returns per unit of risk. Coheris SA is currently generating about -0.02 per unit of volatility. If you would invest  852.00  in Coheris SA on December 21, 2024 and sell it today you would lose (40.00) from holding Coheris SA or give up 4.69% of portfolio value over 90 days.

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

HubSpot  vs.  Coheris SA

HubSpot

Risk-Adjusted Performance

Very Weak

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

Coheris SA

Risk-Adjusted Performance

Very Weak

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

Pair Trading with HubSpot and Coheris SA

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

The idea behind HubSpot and Coheris SA 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.