Correlation Between Gitlab and Blend Labs

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

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

Diversification Opportunities for Gitlab and Blend Labs

0.64

Correlation Coefficient

Gitlab  Blend Labs

Poor diversification

The 3 months correlation between Gitlab and Blend is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and Blend Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blend Labs 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 Blend Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blend Labs has no effect on the direction of Gitlab i.e., Gitlab and Blend Labs go up and down completely randomly.

Pair Corralation between Gitlab and Blend Labs

Given the investment horizon of 90 days Gitlab Inc is expected to under-perform the Blend Labs. But the stock apears to be less risky and, when comparing its historical volatility, Gitlab Inc is 1.48 times less risky than Blend Labs. The stock trades about -0.01 of its potential returns per unit of risk. The Blend Labs is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  354.00  in Blend Labs on May 26, 2025 and sell it today you would earn a total of  14.00  from holding Blend Labs or generate 3.95% return on investment over 90 days.

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

Gitlab Inc  vs.  Blend Labs

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.

Blend Labs

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blend Labs are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Blend Labs may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Gitlab and Blend Labs

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

The idea behind Gitlab Inc and Blend Labs 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.