Correlation Between Gitlab and Amplitude

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

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

Diversification Opportunities for Gitlab and Amplitude

0.02

Correlation Coefficient

Gitlab  Amplitude

Significant diversification

The 3 months correlation between Gitlab and Amplitude is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and Amplitude in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitude 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 Amplitude. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitude has no effect on the direction of Gitlab i.e., Gitlab and Amplitude go up and down completely randomly.

Pair Corralation between Gitlab and Amplitude

Given the investment horizon of 90 days Gitlab Inc is expected to under-perform the Amplitude. But the stock apears to be less risky and, when comparing its historical volatility, Gitlab Inc is 1.1 times less risky than Amplitude. The stock trades about -0.02 of its potential returns per unit of risk. The Amplitude is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  942.00  in Amplitude on May 7, 2025 and sell it today you would earn a total of  254.00  from holding Amplitude or generate 26.96% return on investment over 90 days.

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

Gitlab Inc  vs.  Amplitude

Gitlab Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Gitlab Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Gitlab is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amplitude

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Amplitude are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Amplitude disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gitlab and Amplitude

The main advantage of trading using opposite Gitlab and Amplitude positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gitlab position performs unexpectedly, Amplitude 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 Amplitude will offset losses from the drop in Amplitude's long position.

The idea behind Gitlab Inc and Amplitude 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 Global Correlations module to find global opportunities by holding instruments from different markets.