Correlation Between Duolingo and Gitlab

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

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

Diversification Opportunities for Duolingo and Gitlab

-0.57

Correlation Coefficient

Duolingo  Gitlab

Excellent diversification

The 3 months correlation between Duolingo and Gitlab is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Duolingo and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc and Duolingo 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 Duolingo 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 Duolingo i.e., Duolingo and Gitlab go up and down completely randomly.

Pair Corralation between Duolingo and Gitlab

Given the investment horizon of 90 days Duolingo is expected to under-perform the Gitlab. In addition to that, Duolingo is 1.25 times more volatile than Gitlab Inc. It trades about -0.04 of its total potential returns per unit of risk. Gitlab Inc is currently generating about 0.06 per unit of volatility. If you would invest  4,381  in Gitlab Inc on July 31, 2025 and sell it today you would earn a total of  440.00  from holding Gitlab Inc or generate 10.04% return on investment over 90 days.

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

Duolingo  vs.  Gitlab Inc

Duolingo

Risk-Adjusted Performance

Weakest

Over the last 90 days Duolingo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Gitlab Inc

Risk-Adjusted Performance

Weak

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 uncertain essential indicators, Gitlab sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Duolingo and Gitlab

The main advantage of trading using opposite Duolingo and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duolingo 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 Duolingo 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.