Correlation Between Gitlab and Expensify

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

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

Diversification Opportunities for Gitlab and Expensify

0.0

Correlation Coefficient

Gitlab  Expensify

Pay attention - limited upside

The 3 months correlation between Gitlab and Expensify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify 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 Expensify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expensify has no effect on the direction of Gitlab i.e., Gitlab and Expensify go up and down completely randomly.

Pair Corralation between Gitlab and Expensify

Given the investment horizon of 90 days Gitlab Inc is expected to generate 0.71 times more return on investment than Expensify. However, Gitlab Inc is 1.41 times less risky than Expensify. It trades about 0.07 of its potential returns per unit of risk. Expensify is currently generating about -0.08 per unit of risk. If you would invest  4,097  in Gitlab Inc on April 20, 2025 and sell it today you would earn a total of  440.00  from holding Gitlab Inc or generate 10.74% return on investment over 90 days.

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

Gitlab Inc  vs.  Expensify

Gitlab Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gitlab Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Gitlab sustained solid returns over the last few months and may actually be approaching a breakup point.

Expensify

Risk-Adjusted Performance

Very Weak

Over the last 90 days Expensify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Gitlab and Expensify

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

The idea behind Gitlab Inc and Expensify 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.