Correlation Between BeyondSpring and Climb Bio

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

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

Diversification Opportunities for BeyondSpring and Climb Bio

-0.73

Correlation Coefficient

BeyondSpring  Climb Bio

Pay attention - limited upside

The 3 months correlation between BeyondSpring and Climb is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding BeyondSpring and Climb Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Climb Bio and BeyondSpring 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 BeyondSpring 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 BeyondSpring i.e., BeyondSpring and Climb Bio go up and down completely randomly.

Pair Corralation between BeyondSpring and Climb Bio

Given the investment horizon of 90 days BeyondSpring is expected to under-perform the Climb Bio. But the stock apears to be less risky and, when comparing its historical volatility, BeyondSpring is 1.36 times less risky than Climb Bio. The stock trades about -0.09 of its potential returns per unit of risk. The Climb Bio is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  126.00  in Climb Bio on July 7, 2025 and sell it today you would earn a total of  72.00  from holding Climb Bio or generate 57.14% return on investment over 90 days.

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

BeyondSpring  vs.  Climb Bio

BeyondSpring

Risk-Adjusted Performance

Weakest

Over the last 90 days BeyondSpring has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Climb Bio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Climb Bio are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Climb Bio displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BeyondSpring and Climb Bio

The main advantage of trading using opposite BeyondSpring and Climb Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeyondSpring 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 BeyondSpring 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.