Correlation Between Climb Bio and Vaccinex

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

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

Diversification Opportunities for Climb Bio and Vaccinex

-0.03

Correlation Coefficient

Climb Bio  Vaccinex

Good diversification

The 3 months correlation between Climb and Vaccinex is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Climb Bio and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and Climb Bio 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 Climb Bio are associated (or correlated) with Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Climb Bio i.e., Climb Bio and Vaccinex go up and down completely randomly.

Pair Corralation between Climb Bio and Vaccinex

Given the investment horizon of 90 days Climb Bio is expected to generate 0.86 times more return on investment than Vaccinex. However, Climb Bio is 1.17 times less risky than Vaccinex. It trades about 0.02 of its potential returns per unit of risk. Vaccinex is currently generating about -0.05 per unit of risk. If you would invest  259.00  in Climb Bio on October 21, 2024 and sell it today you would lose (64.00) from holding Climb Bio or give up 24.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.49%
Values	Daily Returns

Climb Bio  vs.  Vaccinex

Climb Bio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Climb Bio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Vaccinex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaccinex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Climb Bio and Vaccinex

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

The idea behind Climb Bio and Vaccinex 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.