Correlation Between MongoDB and HubSpot

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

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

Diversification Opportunities for MongoDB and HubSpot

-0.28

Correlation Coefficient

MongoDB  HubSpot

Very good diversification

The 3 months correlation between MongoDB and HubSpot is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot and MongoDB 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 MongoDB 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 MongoDB i.e., MongoDB and HubSpot go up and down completely randomly.

Pair Corralation between MongoDB and HubSpot

Considering the 90-day investment horizon MongoDB is expected to generate 0.98 times more return on investment than HubSpot. However, MongoDB is 1.02 times less risky than HubSpot. It trades about 0.21 of its potential returns per unit of risk. HubSpot is currently generating about -0.01 per unit of risk. If you would invest  16,266  in MongoDB on April 23, 2025 and sell it today you would earn a total of  5,958  from holding MongoDB or generate 36.63% return on investment over 90 days.

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

MongoDB  vs.  HubSpot

MongoDB

Risk-Adjusted Performance

Solid

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

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 comparatively stable fundamental drivers, HubSpot is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MongoDB and HubSpot

The main advantage of trading using opposite MongoDB and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MongoDB 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 MongoDB 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.