Correlation Between Gitlab and Xometry

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

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

Diversification Opportunities for Gitlab and Xometry

0.28

Correlation Coefficient

Gitlab  Xometry

Modest diversification

The 3 months correlation between Gitlab and Xometry is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and Xometry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xometry 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 Xometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xometry has no effect on the direction of Gitlab i.e., Gitlab and Xometry go up and down completely randomly.

Pair Corralation between Gitlab and Xometry

Given the investment horizon of 90 days Gitlab is expected to generate 3.86 times less return on investment than Xometry. But when comparing it to its historical volatility, Gitlab Inc is 1.2 times less risky than Xometry. It trades about 0.06 of its potential returns per unit of risk. Xometry is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  2,334  in Xometry on April 22, 2025 and sell it today you would earn a total of  1,171  from holding Xometry or generate 50.17% return on investment over 90 days.

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

Gitlab Inc  vs.  Xometry

Gitlab Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gitlab Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Gitlab may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Xometry

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Xometry are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Xometry reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gitlab and Xometry

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

The idea behind Gitlab Inc and Xometry 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.