Correlation Between Gitlab and S A P
Can any of the company-specific risk be diversified away by investing in both Gitlab and S A P 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 S A P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gitlab Inc and SAP SE ADR, you can compare the effects of market volatilities on Gitlab and S A P 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 S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gitlab and S A P.
Diversification Opportunities for Gitlab and S A P
Good diversification
The 3 months correlation between Gitlab and SAP is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and SAP SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE ADR 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE ADR has no effect on the direction of Gitlab i.e., Gitlab and S A P go up and down completely randomly.
Pair Corralation between Gitlab and S A P
Given the investment horizon of 90 days Gitlab Inc is expected to generate 1.72 times more return on investment than S A P. However, Gitlab is 1.72 times more volatile than SAP SE ADR. It trades about 0.19 of its potential returns per unit of risk. SAP SE ADR is currently generating about 0.32 per unit of risk. If you would invest 5,252 in Gitlab Inc on February 22, 2024 and sell it today you would earn a total of 565.00 from holding Gitlab Inc or generate 10.76% 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. SAP SE ADR
Performance |
Timeline |
Gitlab Inc |
SAP SE ADR |
Gitlab and S A P Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gitlab and S A P
The main advantage of trading using opposite Gitlab and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gitlab position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.Gitlab vs. ACI Worldwide | Gitlab vs. Remitly Global | Gitlab vs. EverCommerce | Gitlab vs. Global Blue Group |
S A P vs. Cadence Design Systems | S A P vs. Workday | S A P vs. Zoom Video Communications | S A P vs. Shopify |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |