Correlation Between Sprout Social and Climb Global

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

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

Diversification Opportunities for Sprout Social and Climb Global

0.0

Correlation Coefficient

Sprout Social  Climb Global

Pay attention - limited upside

The 3 months correlation between Sprout and Climb is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sprout Social 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 Sprout Social 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 Sprout Social 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 Sprout Social i.e., Sprout Social and Climb Global go up and down completely randomly.

Pair Corralation between Sprout Social and Climb Global

Considering the 90-day investment horizon Sprout Social is expected to under-perform the Climb Global. In addition to that, Sprout Social is 1.01 times more volatile than Climb Global Solutions. It trades about -0.14 of its total potential returns per unit of risk. Climb Global Solutions is currently generating about -0.05 per unit of volatility. If you would invest  12,489  in Climb Global Solutions on August 12, 2025 and sell it today you would lose (1,548) from holding Climb Global Solutions or give up 12.39% of portfolio value over 90 days.

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

Sprout Social  vs.  Climb Global Solutions

Sprout Social

Risk-Adjusted Performance

Weakest

Over the last 90 days Sprout Social has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Climb Global Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days Climb Global Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Sprout Social and Climb Global

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

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.