Correlation Between Aptose Biosciences and Theratechnologies
Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences and Theratechnologies 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 Theratechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptose Biosciences and Theratechnologies, you can compare the effects of market volatilities on Aptose Biosciences and Theratechnologies 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 Theratechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and Theratechnologies.
Diversification Opportunities for Aptose Biosciences and Theratechnologies
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aptose and Theratechnologies is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Theratechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theratechnologies 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 Theratechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theratechnologies has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Theratechnologies go up and down completely randomly.
Pair Corralation between Aptose Biosciences and Theratechnologies
Assuming the 90 days trading horizon Aptose Biosciences is expected to under-perform the Theratechnologies. But the stock apears to be less risky and, when comparing its historical volatility, Aptose Biosciences is 1.12 times less risky than Theratechnologies. The stock trades about -0.15 of its potential returns per unit of risk. The Theratechnologies is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Theratechnologies on August 29, 2024 and sell it today you would lose (346.00) from holding Theratechnologies or give up 66.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.47% |
| Values | Daily Returns |
Aptose Biosciences vs. Theratechnologies
Performance |
| Timeline |
| Aptose Biosciences |
| Theratechnologies |
Aptose Biosciences and Theratechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptose Biosciences and Theratechnologies
The main advantage of trading using opposite Aptose Biosciences and Theratechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences position performs unexpectedly, Theratechnologies 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 Theratechnologies will offset losses from the drop in Theratechnologies' long position.| Aptose Biosciences vs. Resverlogix Corp | Aptose Biosciences vs. iShares Canadian HYBrid | Aptose Biosciences vs. Altagas Cum Red | Aptose Biosciences vs. European Residential Real |
| Theratechnologies vs. Resverlogix Corp | Theratechnologies vs. iShares Canadian HYBrid | Theratechnologies vs. Altagas Cum Red | Theratechnologies vs. European Residential Real |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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