Correlation Between Gitlab and DHI
Can any of the company-specific risk be diversified away by investing in both Gitlab and DHI 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 DHI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gitlab Inc and DHI Group, you can compare the effects of market volatilities on Gitlab and DHI 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 DHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gitlab and DHI.
Diversification Opportunities for Gitlab and DHI
Good diversification
The 3 months correlation between Gitlab and DHI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and DHI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHI Group 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 DHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHI Group has no effect on the direction of Gitlab i.e., Gitlab and DHI go up and down completely randomly.
Pair Corralation between Gitlab and DHI
Given the investment horizon of 90 days Gitlab Inc is expected to generate 1.04 times more return on investment than DHI. However, Gitlab is 1.04 times more volatile than DHI Group. It trades about 0.04 of its potential returns per unit of risk. DHI Group is currently generating about -0.04 per unit of risk. If you would invest 4,278 in Gitlab Inc on August 28, 2024 and sell it today you would earn a total of 2,359 from holding Gitlab Inc or generate 55.14% 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. DHI Group
Performance |
| Timeline |
| Gitlab Inc |
| DHI Group |
Gitlab and DHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gitlab and DHI
The main advantage of trading using opposite Gitlab and DHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gitlab position performs unexpectedly, DHI 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 DHI will offset losses from the drop in DHI's long position.The idea behind Gitlab Inc and DHI Group 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.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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |