Correlation Between CSW Industrials, and Climb Global

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

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

Diversification Opportunities for CSW Industrials, and Climb Global

0.19

Correlation Coefficient

CSW Industrials,  Climb Global

Average diversification

The 3 months correlation between CSW and Climb is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials, and Climb Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Climb Global Solutions and CSW Industrials, 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 CSW Industrials, are associated (or correlated) with Climb Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Climb Global Solutions has no effect on the direction of CSW Industrials, i.e., CSW Industrials, and Climb Global go up and down completely randomly.

Pair Corralation between CSW Industrials, and Climb Global

Considering the 90-day investment horizon CSW Industrials, is expected to under-perform the Climb Global. But the stock apears to be less risky and, when comparing its historical volatility, CSW Industrials, is 1.04 times less risky than Climb Global. The stock trades about -0.04 of its potential returns per unit of risk. The Climb Global Solutions is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  10,453  in Climb Global Solutions on April 23, 2025 and sell it today you would lose (557.00) from holding Climb Global Solutions or give up 5.33% of portfolio value over 90 days.

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

CSW Industrials,  vs.  Climb Global Solutions

CSW Industrials,

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CSW Industrials, is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Climb Global Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Climb Global Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Climb Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CSW Industrials, and Climb Global

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

The idea behind CSW Industrials, and Climb Global Solutions 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .