Correlation Between Citigroup and Gitlab

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

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

Diversification Opportunities for Citigroup and Gitlab

-0.07

Correlation Coefficient

Citigroup  Gitlab

Good diversification

The 3 months correlation between Citigroup and Gitlab is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc and Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and Gitlab go up and down completely randomly.

Pair Corralation between Citigroup and Gitlab

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.51 times more return on investment than Gitlab. However, Citigroup is 1.97 times less risky than Gitlab. It trades about 0.4 of its potential returns per unit of risk. Gitlab Inc is currently generating about 0.06 per unit of risk. If you would invest  6,404  in Citigroup on April 22, 2025 and sell it today you would earn a total of  2,861  from holding Citigroup or generate 44.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Gitlab Inc

Citigroup

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Gitlab Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gitlab Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Gitlab may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Citigroup and Gitlab

The main advantage of trading using opposite Citigroup and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.

The idea behind Citigroup and Gitlab Inc 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.