Correlation Between Climb Bio and Finch Therapeutics

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

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

Diversification Opportunities for Climb Bio and Finch Therapeutics

0.0

Correlation Coefficient

Climb Bio  Finch Therapeutics

Pay attention - limited upside

The 3 months correlation between Climb and Finch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Climb Bio and Finch Therapeutics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finch Therapeutics 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 Finch Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finch Therapeutics has no effect on the direction of Climb Bio i.e., Climb Bio and Finch Therapeutics go up and down completely randomly.

Pair Corralation between Climb Bio and Finch Therapeutics

If you would invest  125.00  in Climb Bio on May 5, 2025 and sell it today you would earn a total of  20.00  from holding Climb Bio or generate 16.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Climb Bio  vs.  Finch Therapeutics Group

Climb Bio

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Climb Bio are ranked lower than 5 (%) 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.

Finch Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Finch Therapeutics Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Finch Therapeutics is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Climb Bio and Finch Therapeutics

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

The idea behind Climb Bio and Finch Therapeutics Group 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.