Correlation Between GigaCloud Technology and Gitlab
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology 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 GigaCloud Technology and Gitlab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaCloud Technology Class and Gitlab Inc, you can compare the effects of market volatilities on GigaCloud Technology 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 GigaCloud Technology with a short position of Gitlab. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Gitlab.
Diversification Opportunities for GigaCloud Technology and Gitlab
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GigaCloud and Gitlab is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc and GigaCloud Technology 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 GigaCloud Technology Class 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 GigaCloud Technology i.e., GigaCloud Technology and Gitlab go up and down completely randomly.
Pair Corralation between GigaCloud Technology and Gitlab
Considering the 90-day investment horizon GigaCloud Technology Class is expected to generate 1.52 times more return on investment than Gitlab. However, GigaCloud Technology is 1.52 times more volatile than Gitlab Inc. It trades about 0.15 of its potential returns per unit of risk. Gitlab Inc is currently generating about 0.03 per unit of risk. If you would invest 1,756 in GigaCloud Technology Class on May 30, 2025 and sell it today you would earn a total of 887.00 from holding GigaCloud Technology Class or generate 50.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaCloud Technology Class vs. Gitlab Inc
Performance |
| Timeline |
| GigaCloud Technology |
| Gitlab Inc |
GigaCloud Technology and Gitlab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and Gitlab
The main advantage of trading using opposite GigaCloud Technology and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology 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.| GigaCloud Technology vs. Alarum Technologies | GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Nutanix | GigaCloud Technology vs. Palo Alto Networks |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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