Correlation Between Zscaler and HubSpot

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

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

Diversification Opportunities for Zscaler and HubSpot

-0.49

Correlation Coefficient

Zscaler  HubSpot

Very good diversification

The 3 months correlation between Zscaler and HubSpot is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zscaler and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot and Zscaler 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 Zscaler 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 Zscaler i.e., Zscaler and HubSpot go up and down completely randomly.

Pair Corralation between Zscaler and HubSpot

Allowing for the 90-day total investment horizon Zscaler is expected to generate 0.78 times more return on investment than HubSpot. However, Zscaler is 1.29 times less risky than HubSpot. It trades about 0.23 of its potential returns per unit of risk. HubSpot is currently generating about -0.06 per unit of risk. If you would invest  21,558  in Zscaler on April 25, 2025 and sell it today you would earn a total of  6,872  from holding Zscaler or generate 31.88% return on investment over 90 days.

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

Zscaler  vs.  HubSpot

Zscaler

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zscaler are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Zscaler unveiled 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 latest abnormal 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.

Pair Trading with Zscaler and HubSpot

The main advantage of trading using opposite Zscaler and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zscaler 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 Zscaler 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.