Correlation Between Manhattan Associates and HubSpot
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates 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 Manhattan Associates and HubSpot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and HubSpot, you can compare the effects of market volatilities on Manhattan Associates 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 Manhattan Associates with a short position of HubSpot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and HubSpot.
Diversification Opportunities for Manhattan Associates and HubSpot
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manhattan and HubSpot is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot and Manhattan Associates 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 Manhattan Associates 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 Manhattan Associates i.e., Manhattan Associates and HubSpot go up and down completely randomly.
Pair Corralation between Manhattan Associates and HubSpot
Given the investment horizon of 90 days Manhattan Associates is expected to generate 0.87 times more return on investment than HubSpot. However, Manhattan Associates is 1.15 times less risky than HubSpot. It trades about 0.06 of its potential returns per unit of risk. HubSpot is currently generating about -0.02 per unit of risk. If you would invest 17,565 in Manhattan Associates on March 15, 2025 and sell it today you would earn a total of 1,723 from holding Manhattan Associates or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manhattan Associates vs. HubSpot
Performance |
| Timeline |
| Manhattan Associates |
| HubSpot |
Manhattan Associates and HubSpot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and HubSpot
The main advantage of trading using opposite Manhattan Associates and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates 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.| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |