Correlation Between BJs Wholesale and HubSpot
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and HubSpot 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 BJs Wholesale and HubSpot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Wholesale Club and HubSpot, you can compare the effects of market volatilities on BJs Wholesale and HubSpot 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 BJs Wholesale with a short position of HubSpot. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and HubSpot.
Diversification Opportunities for BJs Wholesale and HubSpot
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BJs and HubSpot is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot and BJs Wholesale 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 BJs Wholesale Club are associated (or correlated) with HubSpot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HubSpot has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and HubSpot go up and down completely randomly.
Pair Corralation between BJs Wholesale and HubSpot
Assuming the 90 days horizon BJs Wholesale is expected to generate 2.24 times less return on investment than HubSpot. But when comparing it to its historical volatility, BJs Wholesale Club is 1.32 times less risky than HubSpot. It trades about 0.25 of its potential returns per unit of risk. HubSpot is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 51,480 in HubSpot on September 4, 2024 and sell it today you would earn a total of 16,600 from holding HubSpot or generate 32.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
BJs Wholesale Club vs. HubSpot
Performance |
| Timeline |
| BJs Wholesale Club |
| HubSpot |
BJs Wholesale and HubSpot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and HubSpot
The main advantage of trading using opposite BJs Wholesale and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, HubSpot 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 HubSpot will offset losses from the drop in HubSpot's long position.| BJs Wholesale vs. Walmart | BJs Wholesale vs. Superior Plus Corp | BJs Wholesale vs. NMI Holdings | BJs Wholesale vs. Origin Agritech |
| HubSpot vs. Avanos Medical | HubSpot vs. Caseys General Stores | HubSpot vs. Japan Medical Dynamic | HubSpot vs. BJs Wholesale Club |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |