Correlation Between Climb Global and Taitron Components

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

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

Diversification Opportunities for Climb Global and Taitron Components

0.21

Correlation Coefficient

Climb Global  Taitron Components

Modest diversification

The 3 months correlation between Climb and Taitron is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Climb Global Solutions and Taitron Components Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taitron Components and Climb Global 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 Global Solutions are associated (or correlated) with Taitron Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taitron Components has no effect on the direction of Climb Global i.e., Climb Global and Taitron Components go up and down completely randomly.

Pair Corralation between Climb Global and Taitron Components

Given the investment horizon of 90 days Climb Global Solutions is expected to generate 1.88 times more return on investment than Taitron Components. However, Climb Global is 1.88 times more volatile than Taitron Components Incorporated. It trades about 0.06 of its potential returns per unit of risk. Taitron Components Incorporated is currently generating about 0.02 per unit of risk. If you would invest  10,175  in Climb Global Solutions on May 3, 2025 and sell it today you would earn a total of  950.00  from holding Climb Global Solutions or generate 9.34% return on investment over 90 days.

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

Climb Global Solutions  vs.  Taitron Components Incorporate

Climb Global Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Climb Global Solutions are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating primary indicators, Climb Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Taitron Components

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Taitron Components Incorporated are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Taitron Components is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Climb Global and Taitron Components

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

The idea behind Climb Global Solutions and Taitron Components Incorporated 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.