Correlation Between Apple and Aptose Biosciences
Can any of the company-specific risk be diversified away by investing in both Apple and Aptose Biosciences 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 Apple and Aptose Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc CDR and Aptose Biosciences, you can compare the effects of market volatilities on Apple and Aptose Biosciences 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 Apple with a short position of Aptose Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Aptose Biosciences.
Diversification Opportunities for Apple and Aptose Biosciences
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Aptose is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences and Apple 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 Apple Inc CDR are associated (or correlated) with Aptose Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptose Biosciences has no effect on the direction of Apple i.e., Apple and Aptose Biosciences go up and down completely randomly.
Pair Corralation between Apple and Aptose Biosciences
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.31 times more return on investment than Aptose Biosciences. However, Apple Inc CDR is 3.26 times less risky than Aptose Biosciences. It trades about 0.06 of its potential returns per unit of risk. Aptose Biosciences is currently generating about -0.21 per unit of risk. If you would invest 2,862 in Apple Inc CDR on September 4, 2024 and sell it today you would earn a total of 648.00 from holding Apple Inc CDR or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Apple Inc CDR vs. Aptose Biosciences
Performance |
| Timeline |
| Apple Inc CDR |
| Aptose Biosciences |
Apple and Aptose Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Aptose Biosciences
The main advantage of trading using opposite Apple and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Aptose Biosciences 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 Aptose Biosciences will offset losses from the drop in Aptose Biosciences' long position.| Apple vs. Economic Investment Trust | Apple vs. Brookfield Office Properties | Apple vs. Upstart Investments | Apple vs. Advent Wireless |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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