Correlation Between HubSpot and Comtech Telecommunicatio

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

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

Diversification Opportunities for HubSpot and Comtech Telecommunicatio

0.16

Correlation Coefficient

HubSpot  Comtech Telecommunicatio

Average diversification

The 3 months correlation between HubSpot and Comtech is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and Comtech Telecommunications Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comtech Telecommunicatio 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 Comtech Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comtech Telecommunicatio has no effect on the direction of HubSpot i.e., HubSpot and Comtech Telecommunicatio go up and down completely randomly.

Pair Corralation between HubSpot and Comtech Telecommunicatio

Given the investment horizon of 90 days HubSpot is expected to under-perform the Comtech Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, HubSpot is 2.46 times less risky than Comtech Telecommunicatio. The stock trades about -0.24 of its potential returns per unit of risk. The Comtech Telecommunications Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  202.00  in Comtech Telecommunications Corp on May 20, 2025 and sell it today you would lose (1.00) from holding Comtech Telecommunications Corp or give up 0.5% of portfolio value over 90 days.

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

HubSpot  vs.  Comtech Telecommunications Cor

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. 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 September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Comtech Telecommunicatio

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Comtech Telecommunications Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Comtech Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with HubSpot and Comtech Telecommunicatio

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

The idea behind HubSpot and Comtech Telecommunications Corp 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.