Correlation Between Workday and HubSpot

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

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

Diversification Opportunities for Workday and HubSpot

0.82

Correlation Coefficient

Workday  HubSpot

Very poor diversification

The 3 months correlation between Workday and HubSpot is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Workday and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot and Workday 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 Workday 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 Workday i.e., Workday and HubSpot go up and down completely randomly.

Pair Corralation between Workday and HubSpot

Given the investment horizon of 90 days Workday is expected to generate 0.75 times more return on investment than HubSpot. However, Workday is 1.34 times less risky than HubSpot. It trades about -0.02 of its potential returns per unit of risk. HubSpot is currently generating about -0.02 per unit of risk. If you would invest  24,949  in Workday on April 20, 2025 and sell it today you would lose (1,643) from holding Workday or give up 6.59% of portfolio value over 90 days.

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

Workday  vs.  HubSpot

Workday

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Workday are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Workday may actually be approaching a critical reversion point that can send shares even higher in August 2025.

HubSpot

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HubSpot are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental drivers, HubSpot may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Workday and HubSpot

The main advantage of trading using opposite Workday and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workday 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 Workday 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.