Correlation Between HubSpot and SentinelOne

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

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

Diversification Opportunities for HubSpot and SentinelOne

0.68

Correlation Coefficient

HubSpot  SentinelOne

Poor diversification

The 3 months correlation between HubSpot and SentinelOne is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne 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 SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of HubSpot i.e., HubSpot and SentinelOne go up and down completely randomly.

Pair Corralation between HubSpot and SentinelOne

Given the investment horizon of 90 days HubSpot is expected to under-perform the SentinelOne. But the stock apears to be less risky and, when comparing its historical volatility, HubSpot is 1.05 times less risky than SentinelOne. The stock trades about -0.06 of its potential returns per unit of risk. The SentinelOne is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,850  in SentinelOne on April 30, 2025 and sell it today you would earn a total of  19.00  from holding SentinelOne or generate 1.03% return on investment over 90 days.

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

HubSpot  vs.  SentinelOne

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 latest unfluctuating performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with HubSpot and SentinelOne

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

The idea behind HubSpot and SentinelOne 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.