Correlation Between HubSpot and MaxLinear

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

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

Diversification Opportunities for HubSpot and MaxLinear

-0.6

Correlation Coefficient

HubSpot  MaxLinear

Excellent diversification

The 3 months correlation between HubSpot and MaxLinear is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and MaxLinear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxLinear 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 MaxLinear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxLinear has no effect on the direction of HubSpot i.e., HubSpot and MaxLinear go up and down completely randomly.

Pair Corralation between HubSpot and MaxLinear

Given the investment horizon of 90 days HubSpot is expected to under-perform the MaxLinear. But the stock apears to be less risky and, when comparing its historical volatility, HubSpot is 1.28 times less risky than MaxLinear. The stock trades about -0.12 of its potential returns per unit of risk. The MaxLinear is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,063  in MaxLinear on May 3, 2025 and sell it today you would earn a total of  519.00  from holding MaxLinear or generate 48.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

HubSpot  vs.  MaxLinear

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 inconsistent 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.

MaxLinear

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MaxLinear are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, MaxLinear disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HubSpot and MaxLinear

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

The idea behind HubSpot and MaxLinear 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.