Correlation Between Gitlab and ZoomInfo Technologies

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

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

Diversification Opportunities for Gitlab and ZoomInfo Technologies

0.59

Correlation Coefficient

Gitlab  ZoomInfo Technologies

Very weak diversification

The 3 months correlation between Gitlab and ZoomInfo is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gitlab Inc and ZoomInfo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomInfo Technologies 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 ZoomInfo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZoomInfo Technologies has no effect on the direction of Gitlab i.e., Gitlab and ZoomInfo Technologies go up and down completely randomly.

Pair Corralation between Gitlab and ZoomInfo Technologies

Given the investment horizon of 90 days Gitlab Inc is expected to under-perform the ZoomInfo Technologies. In addition to that, Gitlab is 1.31 times more volatile than ZoomInfo Technologies. It trades about -0.12 of its total potential returns per unit of risk. ZoomInfo Technologies is currently generating about -0.07 per unit of volatility. If you would invest  1,031  in ZoomInfo Technologies on May 12, 2025 and sell it today you would lose (34.00) from holding ZoomInfo Technologies or give up 3.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	28.57%
Values	Daily Returns

Gitlab Inc  vs.  ZoomInfo Technologies

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.

ZoomInfo Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days ZoomInfo Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Gitlab and ZoomInfo Technologies

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

The idea behind Gitlab Inc and ZoomInfo Technologies 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.