Correlation Between Gitlab and Blackline

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

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

Diversification Opportunities for Gitlab and Blackline

0.84

Correlation Coefficient

Gitlab  Blackline

Very poor diversification

The 3 months correlation between Gitlab and Blackline is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and Blackline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackline and Gitlab 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 Gitlab Inc are associated (or correlated) with Blackline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackline has no effect on the direction of Gitlab i.e., Gitlab and Blackline go up and down completely randomly.

Pair Corralation between Gitlab and Blackline

Given the investment horizon of 90 days Gitlab Inc is expected to generate 1.48 times more return on investment than Blackline. However, Gitlab is 1.48 times more volatile than Blackline. It trades about 0.04 of its potential returns per unit of risk. Blackline is currently generating about 0.04 per unit of risk. 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	Strong
Accuracy	100.0%
Values	Daily Returns

Gitlab Inc  vs.  Blackline

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.

Blackline

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackline are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, Blackline disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gitlab and Blackline

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

The idea behind Gitlab Inc and Blackline 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.