Correlation Between HubSpot and Shopify

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

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

Diversification Opportunities for HubSpot and Shopify

-0.64

Correlation Coefficient

HubSpot  Shopify

Excellent diversification

The 3 months correlation between HubSpot and Shopify is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and Shopify Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shopify Class A 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 Shopify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shopify Class A has no effect on the direction of HubSpot i.e., HubSpot and Shopify go up and down completely randomly.

Pair Corralation between HubSpot and Shopify

Given the investment horizon of 90 days HubSpot is expected to under-perform the Shopify. But the stock apears to be less risky and, when comparing its historical volatility, HubSpot is 1.17 times less risky than Shopify. The stock trades about -0.12 of its potential returns per unit of risk. The Shopify Class A is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  9,838  in Shopify Class A on May 3, 2025 and sell it today you would earn a total of  2,383  from holding Shopify Class A or generate 24.22% return on investment over 90 days.

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

HubSpot  vs.  Shopify Class A

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 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.

Shopify Class A

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shopify Class A are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Shopify reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HubSpot and Shopify

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

The idea behind HubSpot and Shopify Class A 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..