Correlation Between Gitlab and Global X
Can any of the company-specific risk be diversified away by investing in both Gitlab and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gitlab Inc and Global X Funds, you can compare the effects of market volatilities on Gitlab and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gitlab and Global X.
Diversification Opportunities for Gitlab and Global X
Good diversification
The 3 months correlation between Gitlab and Global is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Gitlab i.e., Gitlab and Global X go up and down completely randomly.
Pair Corralation between Gitlab and Global X
Given the investment horizon of 90 days Gitlab Inc is expected to under-perform the Global X. In addition to that, Gitlab is 4.56 times more volatile than Global X Funds. It trades about -0.17 of its total potential returns per unit of risk. Global X Funds is currently generating about 0.02 per unit of volatility. If you would invest 2,581 in Global X Funds on March 4, 2024 and sell it today you would earn a total of 27.00 from holding Global X Funds or generate 1.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gitlab Inc vs. Global X Funds
Performance |
Timeline |
Gitlab Inc |
Global X Funds |
Gitlab and Global X Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gitlab and Global X
The main advantage of trading using opposite Gitlab and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gitlab position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.Gitlab vs. Block Inc | Gitlab vs. Adobe Systems Incorporated | Gitlab vs. Crowdstrike Holdings | Gitlab vs. Cloudflare |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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