Correlation Between Telix Pharmaceuticals and Climb Bio

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

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

Diversification Opportunities for Telix Pharmaceuticals and Climb Bio

-0.07

Correlation Coefficient

Telix Pharmaceuticals  Climb Bio

Good diversification

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

Pair Corralation between Telix Pharmaceuticals and Climb Bio

Considering the 90-day investment horizon Telix Pharmaceuticals Limited is expected to generate 26.39 times more return on investment than Climb Bio. However, Telix Pharmaceuticals is 26.39 times more volatile than Climb Bio. It trades about 0.17 of its potential returns per unit of risk. Climb Bio is currently generating about 0.0 per unit of risk. If you would invest  0.00  in Telix Pharmaceuticals Limited on October 4, 2024 and sell it today you would earn a total of  1,540  from holding Telix Pharmaceuticals Limited or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	6.87%
Values	Daily Returns

Telix Pharmaceuticals Limited  vs.  Climb Bio

Telix Pharmaceuticals

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Telix Pharmaceuticals Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Telix Pharmaceuticals is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Telix Pharmaceuticals and Climb Bio

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

The idea behind Telix Pharmaceuticals Limited and Climb Bio 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.