Correlation Between Addtech AB and HubSpot

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

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

Diversification Opportunities for Addtech AB and HubSpot

0.66

Correlation Coefficient

Addtech AB  HubSpot

Poor diversification

The 3 months correlation between Addtech and HubSpot is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot and Addtech AB 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 Addtech AB 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 Addtech AB i.e., Addtech AB and HubSpot go up and down completely randomly.

Pair Corralation between Addtech AB and HubSpot

Assuming the 90 days trading horizon Addtech AB is expected to generate 0.91 times more return on investment than HubSpot. However, Addtech AB is 1.1 times less risky than HubSpot. It trades about -0.04 of its potential returns per unit of risk. HubSpot is currently generating about -0.28 per unit of risk. If you would invest  3,242  in Addtech AB on May 17, 2025 and sell it today you would lose (218.00) from holding Addtech AB or give up 6.72% of portfolio value over 90 days.

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

Addtech AB  vs.  HubSpot

Addtech AB

Risk-Adjusted Performance

Weakest

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

HubSpot

Risk-Adjusted Performance

Weakest

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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Addtech AB and HubSpot

The main advantage of trading using opposite Addtech AB and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB 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.

The idea behind Addtech AB and HubSpot 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.