Correlation Between Oracle and HubSpot

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

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

Diversification Opportunities for Oracle and HubSpot

-0.84

Correlation Coefficient

Oracle  HubSpot

Pay attention - limited upside

The 3 months correlation between Oracle and HubSpot is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot and Oracle 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 Oracle 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 Oracle i.e., Oracle and HubSpot go up and down completely randomly.

Pair Corralation between Oracle and HubSpot

Assuming the 90 days horizon Oracle is expected to generate 1.05 times more return on investment than HubSpot. However, Oracle is 1.05 times more volatile than HubSpot. It trades about 0.33 of its potential returns per unit of risk. HubSpot is currently generating about -0.04 per unit of risk. If you would invest  12,028  in Oracle on April 30, 2025 and sell it today you would earn a total of  9,282  from holding Oracle or generate 77.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Oracle  vs.  HubSpot

Oracle

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Oracle reported 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. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Oracle and HubSpot

The main advantage of trading using opposite Oracle and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle 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 Oracle 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.