Correlation Between Gitlab and Semrush Holdings

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

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

Diversification Opportunities for Gitlab and Semrush Holdings

0.81

Correlation Coefficient

Gitlab  Semrush Holdings

Very poor diversification

The 3 months correlation between Gitlab and Semrush is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and Semrush Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semrush Holdings 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 Semrush Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semrush Holdings has no effect on the direction of Gitlab i.e., Gitlab and Semrush Holdings go up and down completely randomly.

Pair Corralation between Gitlab and Semrush Holdings

Given the investment horizon of 90 days Gitlab Inc is expected to generate 1.06 times more return on investment than Semrush Holdings. However, Gitlab is 1.06 times more volatile than Semrush Holdings. It trades about 0.02 of its potential returns per unit of risk. Semrush Holdings is currently generating about -0.01 per unit of risk. If you would invest  4,715  in Gitlab Inc on April 29, 2025 and sell it today you would earn a total of  74.00  from holding Gitlab Inc or generate 1.57% return on investment over 90 days.

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

Gitlab Inc  vs.  Semrush Holdings

Gitlab Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gitlab Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Semrush Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semrush Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Semrush Holdings is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Gitlab and Semrush Holdings

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

The idea behind Gitlab Inc and Semrush Holdings 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.