Correlation Between MongoDB and Gitlab

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

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

Diversification Opportunities for MongoDB and Gitlab

-0.07

Correlation Coefficient

MongoDB  Gitlab

Good diversification

The 3 months correlation between MongoDB and Gitlab is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc and MongoDB 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 MongoDB are associated (or correlated) with Gitlab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gitlab Inc has no effect on the direction of MongoDB i.e., MongoDB and Gitlab go up and down completely randomly.

Pair Corralation between MongoDB and Gitlab

Considering the 90-day investment horizon MongoDB is expected to generate 0.93 times more return on investment than Gitlab. However, MongoDB is 1.08 times less risky than Gitlab. It trades about 0.31 of its potential returns per unit of risk. Gitlab Inc is currently generating about 0.17 per unit of risk. If you would invest  20,920  in MongoDB on April 27, 2025 and sell it today you would earn a total of  3,217  from holding MongoDB or generate 15.38% return on investment over 90 days.

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

MongoDB  vs.  Gitlab Inc

MongoDB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, MongoDB sustained solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with MongoDB and Gitlab

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

The idea behind MongoDB and Gitlab 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.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.