Correlation Between GivBux and Gitlab

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

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

Diversification Opportunities for GivBux and Gitlab

0.05

Correlation Coefficient

GivBux  Gitlab

Significant diversification

The 3 months correlation between GivBux and Gitlab is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GivBux Inc and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc and GivBux 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 GivBux Inc 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 GivBux i.e., GivBux and Gitlab go up and down completely randomly.

Pair Corralation between GivBux and Gitlab

Given the investment horizon of 90 days GivBux Inc is expected to generate 4.29 times more return on investment than Gitlab. However, GivBux is 4.29 times more volatile than Gitlab Inc. It trades about 0.23 of its potential returns per unit of risk. Gitlab Inc is currently generating about -0.05 per unit of risk. If you would invest  120.00  in GivBux Inc on December 29, 2024 and sell it today you would earn a total of  482.00  from holding GivBux Inc or generate 401.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

GivBux Inc  vs.  Gitlab Inc

GivBux Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

Gitlab Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gitlab Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with GivBux and Gitlab

The main advantage of trading using opposite GivBux and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GivBux 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 GivBux Inc 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.