Correlation Between Climb Bio and Celcuity LLC

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

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

Diversification Opportunities for Climb Bio and Celcuity LLC

0.79

Correlation Coefficient

Climb Bio  Celcuity LLC

Poor diversification

The 3 months correlation between Climb and Celcuity is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Climb Bio and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC 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 Celcuity LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celcuity LLC has no effect on the direction of Climb Bio i.e., Climb Bio and Celcuity LLC go up and down completely randomly.

Pair Corralation between Climb Bio and Celcuity LLC

Given the investment horizon of 90 days Climb Bio is expected to generate 3.61 times less return on investment than Celcuity LLC. But when comparing it to its historical volatility, Climb Bio is 4.07 times less risky than Celcuity LLC. It trades about 0.18 of its potential returns per unit of risk. Celcuity LLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,249  in Celcuity LLC on July 1, 2025 and sell it today you would earn a total of  3,958  from holding Celcuity LLC or generate 316.89% return on investment over 90 days.

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

Climb Bio  vs.  Celcuity LLC

Climb Bio

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Climb Bio are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Climb Bio displayed solid returns over the last few months and may actually be approaching a breakup point.

Celcuity LLC

Risk-Adjusted Performance

Good

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

Pair Trading with Climb Bio and Celcuity LLC

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

The idea behind Climb Bio and Celcuity LLC 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.