Correlation Between Gitlab and NetApp

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

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

Diversification Opportunities for Gitlab and NetApp

-0.42

Correlation Coefficient

Gitlab  NetApp

Very good diversification

The 3 months correlation between Gitlab and NetApp is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and NetApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetApp Inc 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 NetApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetApp Inc has no effect on the direction of Gitlab i.e., Gitlab and NetApp go up and down completely randomly.

Pair Corralation between Gitlab and NetApp

Given the investment horizon of 90 days Gitlab Inc is expected to under-perform the NetApp. In addition to that, Gitlab is 2.04 times more volatile than NetApp Inc. It trades about -0.11 of its total potential returns per unit of risk. NetApp Inc is currently generating about 0.1 per unit of volatility. If you would invest  10,004  in NetApp Inc on May 16, 2025 and sell it today you would earn a total of  936.00  from holding NetApp Inc or generate 9.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Gitlab Inc  vs.  NetApp Inc

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 weak performance in the last few months, the Stock's essential indicators remain somewhat 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.

NetApp Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in NetApp Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, NetApp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Gitlab and NetApp

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

The idea behind Gitlab Inc and NetApp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.