Correlation Between Sterling Construction and Climb Global

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

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

Diversification Opportunities for Sterling Construction and Climb Global

0.0

Correlation Coefficient

Sterling Construction  Climb Global

Pay attention - limited upside

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

Pair Corralation between Sterling Construction and Climb Global

Given the investment horizon of 90 days Sterling Construction is expected to generate 1.42 times more return on investment than Climb Global. However, Sterling Construction is 1.42 times more volatile than Climb Global Solutions. It trades about 0.03 of its potential returns per unit of risk. Climb Global Solutions is currently generating about -0.21 per unit of risk. If you would invest  33,793  in Sterling Construction on September 1, 2025 and sell it today you would earn a total of  638.00  from holding Sterling Construction or generate 1.89% return on investment over 90 days.

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

Sterling Construction  vs.  Climb Global Solutions

Sterling Construction

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Sterling Construction are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Sterling Construction disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 conflicting performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sterling Construction and Climb Global

The main advantage of trading using opposite Sterling Construction and Climb Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Construction 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 Sterling Construction 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.