Correlation Between Iteos Therapeutics and Climb Bio

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

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

Diversification Opportunities for Iteos Therapeutics and Climb Bio

0.36

Correlation Coefficient

Iteos Therapeutics  Climb Bio

Weak diversification

The 3 months correlation between Iteos and Climb is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Iteos Therapeutics and Climb Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Climb Bio and Iteos Therapeutics 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 Iteos Therapeutics 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 Iteos Therapeutics i.e., Iteos Therapeutics and Climb Bio go up and down completely randomly.

Pair Corralation between Iteos Therapeutics and Climb Bio

Given the investment horizon of 90 days Iteos Therapeutics is expected to generate 1.41 times less return on investment than Climb Bio. But when comparing it to its historical volatility, Iteos Therapeutics is 1.81 times less risky than Climb Bio. It trades about 0.16 of its potential returns per unit of risk. Climb Bio is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  120.00  in Climb Bio on May 15, 2025 and sell it today you would earn a total of  41.00  from holding Climb Bio or generate 34.17% return on investment over 90 days.

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

Iteos Therapeutics  vs.  Climb Bio

Iteos Therapeutics

Risk-Adjusted Performance

Good

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

Climb Bio

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Climb Bio are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Climb Bio displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Iteos Therapeutics and Climb Bio

The main advantage of trading using opposite Iteos Therapeutics and Climb Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteos Therapeutics 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 Iteos Therapeutics 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.