Correlation Between Aptose Biosciences and Helix BioPharma
Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences and Helix BioPharma 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 Helix BioPharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptose Biosciences and Helix BioPharma Corp, you can compare the effects of market volatilities on Aptose Biosciences and Helix BioPharma 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 Helix BioPharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and Helix BioPharma.
Diversification Opportunities for Aptose Biosciences and Helix BioPharma
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aptose and Helix is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Helix BioPharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix BioPharma Corp 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 Helix BioPharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix BioPharma Corp has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Helix BioPharma go up and down completely randomly.
Pair Corralation between Aptose Biosciences and Helix BioPharma
Assuming the 90 days trading horizon Aptose Biosciences is expected to under-perform the Helix BioPharma. But the stock apears to be less risky and, when comparing its historical volatility, Aptose Biosciences is 1.41 times less risky than Helix BioPharma. The stock trades about -0.2 of its potential returns per unit of risk. The Helix BioPharma Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Helix BioPharma Corp on August 25, 2024 and sell it today you would lose (38.00) from holding Helix BioPharma Corp or give up 33.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Aptose Biosciences vs. Helix BioPharma Corp
Performance |
| Timeline |
| Aptose Biosciences |
| Helix BioPharma Corp |
Aptose Biosciences and Helix BioPharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptose Biosciences and Helix BioPharma
The main advantage of trading using opposite Aptose Biosciences and Helix BioPharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences position performs unexpectedly, Helix BioPharma 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 Helix BioPharma will offset losses from the drop in Helix BioPharma's long position.The idea behind Aptose Biosciences and Helix BioPharma Corp 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.| Helix BioPharma vs. Microbix Biosystems | Helix BioPharma vs. Oncolytics Biotech | Helix BioPharma vs. Spectral Med | Helix BioPharma vs. Theratechnologies |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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