Correlation Between Aptose Biosciences and Spectral Med
Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences and Spectral Med 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 Aptose Biosciences and Spectral Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptose Biosciences and Spectral Med, you can compare the effects of market volatilities on Aptose Biosciences and Spectral Med 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 Aptose Biosciences with a short position of Spectral Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and Spectral Med.
Diversification Opportunities for Aptose Biosciences and Spectral Med
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aptose and Spectral is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Spectral Med in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectral Med and Aptose Biosciences 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 Aptose Biosciences are associated (or correlated) with Spectral Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectral Med has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Spectral Med go up and down completely randomly.
Pair Corralation between Aptose Biosciences and Spectral Med
Assuming the 90 days trading horizon Aptose Biosciences is expected to under-perform the Spectral Med. In addition to that, Aptose Biosciences is 1.82 times more volatile than Spectral Med. It trades about -0.37 of its total potential returns per unit of risk. Spectral Med is currently generating about 0.0 per unit of volatility. If you would invest 58.00 in Spectral Med on August 29, 2024 and sell it today you would lose (1.00) from holding Spectral Med or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptose Biosciences vs. Spectral Med
Performance |
| Timeline |
| Aptose Biosciences |
| Spectral Med |
Aptose Biosciences and Spectral Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptose Biosciences and Spectral Med
The main advantage of trading using opposite Aptose Biosciences and Spectral Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences position performs unexpectedly, Spectral Med 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 Spectral Med will offset losses from the drop in Spectral Med's long position.The idea behind Aptose Biosciences and Spectral Med 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.| Spectral Med vs. Helix BioPharma Corp | Spectral Med vs. Aptose Biosciences | Spectral Med vs. Microbix Biosystems | Spectral Med vs. Resverlogix Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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