Correlation Between Gitlab and MondayCom

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

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

Diversification Opportunities for Gitlab and MondayCom

0.49

Correlation Coefficient

Gitlab  MondayCom

Very weak diversification

The 3 months correlation between Gitlab and MondayCom is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom 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 MondayCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MondayCom has no effect on the direction of Gitlab i.e., Gitlab and MondayCom go up and down completely randomly.

Pair Corralation between Gitlab and MondayCom

Given the investment horizon of 90 days Gitlab Inc is expected to generate 0.71 times more return on investment than MondayCom. However, Gitlab Inc is 1.41 times less risky than MondayCom. It trades about -0.01 of its potential returns per unit of risk. MondayCom is currently generating about -0.15 per unit of risk. If you would invest  4,760  in Gitlab Inc on May 21, 2025 and sell it today you would lose (225.00) from holding Gitlab Inc or give up 4.73% of portfolio value over 90 days.

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

Gitlab Inc  vs.  MondayCom

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.

MondayCom

Risk-Adjusted Performance

Weakest

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

Pair Trading with Gitlab and MondayCom

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

The idea behind Gitlab Inc and MondayCom 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.