Correlation Between Vanguard Growth and Climb Global

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

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

Diversification Opportunities for Vanguard Growth and Climb Global

-0.15

Correlation Coefficient

Vanguard Growth  Climb Global

Good diversification

The 3 months correlation between Vanguard and Climb is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth Index 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 Vanguard Growth 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 Vanguard Growth Index 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 Vanguard Growth i.e., Vanguard Growth and Climb Global go up and down completely randomly.

Pair Corralation between Vanguard Growth and Climb Global

Assuming the 90 days horizon Vanguard Growth is expected to generate 1.12 times less return on investment than Climb Global. But when comparing it to its historical volatility, Vanguard Growth Index is 3.26 times less risky than Climb Global. It trades about 0.29 of its potential returns per unit of risk. Climb Global Solutions is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  10,111  in Climb Global Solutions on May 2, 2025 and sell it today you would earn a total of  1,689  from holding Climb Global Solutions or generate 16.7% return on investment over 90 days.

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

Vanguard Growth Index  vs.  Climb Global Solutions

Vanguard Growth Index

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Growth Index are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vanguard Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Climb Global Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Climb Global Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating primary indicators, Climb Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vanguard Growth and Climb Global

The main advantage of trading using opposite Vanguard Growth and Climb Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Growth 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 Vanguard Growth Index 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.