Correlation Between Jfrog and Gitlab

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

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

Diversification Opportunities for Jfrog and Gitlab

0.7

Correlation Coefficient

Jfrog  Gitlab

Poor diversification

The 3 months correlation between Jfrog and Gitlab is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc and Jfrog 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 Jfrog 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 Jfrog i.e., Jfrog and Gitlab go up and down completely randomly.

Pair Corralation between Jfrog and Gitlab

Given the investment horizon of 90 days Jfrog is expected to generate 1.07 times more return on investment than Gitlab. However, Jfrog is 1.07 times more volatile than Gitlab Inc. It trades about 0.66 of its potential returns per unit of risk. Gitlab Inc is currently generating about 0.44 per unit of risk. If you would invest  2,979  in Jfrog on February 17, 2025 and sell it today you would earn a total of  1,332  from holding Jfrog or generate 44.71% return on investment over 90 days.

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

Jfrog  vs.  Gitlab Inc

Jfrog

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jfrog are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Jfrog is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Gitlab Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gitlab Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Jfrog and Gitlab

The main advantage of trading using opposite Jfrog and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog 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 Jfrog 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.