Correlation Between Climb Bio and Novavax
Can any of the company-specific risk be diversified away by investing in both Climb Bio and Novavax 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 Novavax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Climb Bio and Novavax, you can compare the effects of market volatilities on Climb Bio and Novavax 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 Novavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Climb Bio and Novavax.
Diversification Opportunities for Climb Bio and Novavax
Very weak diversification
The 3 months correlation between Climb and Novavax is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Climb Bio and Novavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novavax 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 Novavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novavax has no effect on the direction of Climb Bio i.e., Climb Bio and Novavax go up and down completely randomly.
Pair Corralation between Climb Bio and Novavax
Given the investment horizon of 90 days Climb Bio is expected to generate 1.19 times more return on investment than Novavax. However, Climb Bio is 1.19 times more volatile than Novavax. It trades about 0.19 of its potential returns per unit of risk. Novavax is currently generating about 0.04 per unit of risk. If you would invest 129.00 in Climb Bio on June 4, 2025 and sell it today you would earn a total of 94.00 from holding Climb Bio or generate 72.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Climb Bio vs. Novavax
Performance |
| Timeline |
| Climb Bio |
| Novavax |
Climb Bio and Novavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Climb Bio and Novavax
The main advantage of trading using opposite Climb Bio and Novavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Climb Bio position performs unexpectedly, Novavax 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 Novavax will offset losses from the drop in Novavax's long position.| Climb Bio vs. Alta Equipment Group | Climb Bio vs. International Consolidated Airlines | Climb Bio vs. Net Lease Office | Climb Bio vs. Alaska Air Group |
| Novavax vs. Moderna | Novavax vs. Inovio Pharmaceuticals | Novavax vs. BioNTech SE | Novavax vs. AstraZeneca PLC ADR |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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