Correlation Between HubSpot and Repligen

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

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

Diversification Opportunities for HubSpot and Repligen

0.47

Correlation Coefficient

HubSpot  Repligen

Very weak diversification

The 3 months correlation between HubSpot and Repligen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of HubSpot i.e., HubSpot and Repligen go up and down completely randomly.

Pair Corralation between HubSpot and Repligen

Given the investment horizon of 90 days HubSpot is expected to under-perform the Repligen. But the stock apears to be less risky and, when comparing its historical volatility, HubSpot is 1.3 times less risky than Repligen. The stock trades about -0.09 of its potential returns per unit of risk. The Repligen is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  14,554  in Repligen on December 27, 2024 and sell it today you would lose (611.00) from holding Repligen or give up 4.2% of portfolio value over 90 days.

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

HubSpot  vs.  Repligen

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. In spite of abnormal performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Repligen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repligen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Repligen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with HubSpot and Repligen

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

The idea behind HubSpot and Repligen 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.

Check out your portfolio center.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.