Correlation Between HubSpot and AudioCodes
Can any of the company-specific risk be diversified away by investing in both HubSpot and AudioCodes 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 AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HubSpot and AudioCodes, you can compare the effects of market volatilities on HubSpot and AudioCodes 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 AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of HubSpot and AudioCodes.
Diversification Opportunities for HubSpot and AudioCodes
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HubSpot and AudioCodes is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes 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 AudioCodes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AudioCodes has no effect on the direction of HubSpot i.e., HubSpot and AudioCodes go up and down completely randomly.
Pair Corralation between HubSpot and AudioCodes
Given the investment horizon of 90 days HubSpot is expected to generate 0.72 times more return on investment than AudioCodes. However, HubSpot is 1.38 times less risky than AudioCodes. It trades about 0.36 of its potential returns per unit of risk. AudioCodes is currently generating about -0.03 per unit of risk. If you would invest 53,119 in HubSpot on August 26, 2024 and sell it today you would earn a total of 21,142 from holding HubSpot or generate 39.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HubSpot vs. AudioCodes
Performance |
| Timeline |
| HubSpot |
| AudioCodes |
HubSpot and AudioCodes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HubSpot and AudioCodes
The main advantage of trading using opposite HubSpot and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HubSpot position performs unexpectedly, AudioCodes 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 AudioCodes will offset losses from the drop in AudioCodes' long position.The idea behind HubSpot and AudioCodes 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.| AudioCodes vs. Aviat Networks | AudioCodes vs. Silicom | AudioCodes vs. Akoustis Technologies | AudioCodes vs. Gilat Satellite Networks |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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