Correlation Between HubSpot and Auddia

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

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

Diversification Opportunities for HubSpot and Auddia

-0.17

Correlation Coefficient

HubSpot  Auddia

Good diversification

The 3 months correlation between HubSpot and Auddia is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc 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 Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of HubSpot i.e., HubSpot and Auddia go up and down completely randomly.

Pair Corralation between HubSpot and Auddia

Given the investment horizon of 90 days HubSpot is expected to generate 0.1 times more return on investment than Auddia. However, HubSpot is 9.6 times less risky than Auddia. It trades about 0.28 of its potential returns per unit of risk. Auddia Inc is currently generating about 0.01 per unit of risk. If you would invest  49,541  in HubSpot on September 16, 2024 and sell it today you would earn a total of  22,645  from holding HubSpot or generate 45.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.15%
Values	Daily Returns

HubSpot  vs.  Auddia Inc

HubSpot

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HubSpot are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental drivers, HubSpot unveiled solid returns over the last few months and may actually be approaching a breakup point.

Auddia Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Auddia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak fundamental indicators, Auddia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HubSpot and Auddia

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

The idea behind HubSpot and Auddia Inc 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.