Correlation Between DoubleVerify Holdings and Gitlab

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

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

Diversification Opportunities for DoubleVerify Holdings and Gitlab

0.92

Correlation Coefficient

DoubleVerify Holdings  Gitlab

Almost no diversification

The 3 months correlation between DoubleVerify and Gitlab is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding DoubleVerify Holdings and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc and DoubleVerify Holdings 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 DoubleVerify Holdings are associated (or correlated) with Gitlab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gitlab Inc has no effect on the direction of DoubleVerify Holdings i.e., DoubleVerify Holdings and Gitlab go up and down completely randomly.

Pair Corralation between DoubleVerify Holdings and Gitlab

Allowing for the 90-day total investment horizon DoubleVerify Holdings is expected to under-perform the Gitlab. But the stock apears to be less risky and, when comparing its historical volatility, DoubleVerify Holdings is 1.05 times less risky than Gitlab. The stock trades about -0.02 of its potential returns per unit of risk. The Gitlab Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,440  in Gitlab Inc on September 17, 2024 and sell it today you would earn a total of  1,427  from holding Gitlab Inc or generate 32.14% return on investment over 90 days.

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

DoubleVerify Holdings  vs.  Gitlab Inc

DoubleVerify Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DoubleVerify Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, DoubleVerify Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Gitlab Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gitlab Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting essential indicators, Gitlab sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DoubleVerify Holdings and Gitlab

The main advantage of trading using opposite DoubleVerify Holdings and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleVerify Holdings position performs unexpectedly, Gitlab 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 Gitlab will offset losses from the drop in Gitlab's long position.

The idea behind DoubleVerify Holdings and Gitlab Inc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.