Correlation Between Aptose Biosciences and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptose Biosciences and Dow Jones Industrial, you can compare the effects of market volatilities on Aptose Biosciences and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and Dow Jones.
Diversification Opportunities for Aptose Biosciences and Dow Jones
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aptose and Dow is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Dow Jones go up and down completely randomly.
Pair Corralation between Aptose Biosciences and Dow Jones
Given the investment horizon of 90 days Aptose Biosciences is expected to under-perform the Dow Jones. In addition to that, Aptose Biosciences is 6.97 times more volatile than Dow Jones Industrial. It trades about -0.13 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,394,710 in Dow Jones Industrial on August 24, 2024 and sell it today you would earn a total of 1,034,941 from holding Dow Jones Industrial or generate 30.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptose Biosciences vs. Dow Jones Industrial
Performance |
| Timeline |
Aptose Biosciences and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Aptose Biosciences
Pair trading matchups for Aptose Biosciences
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Aptose Biosciences and Dow Jones
The main advantage of trading using opposite Aptose Biosciences and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Aptose Biosciences vs. CytomX Therapeutics | Aptose Biosciences vs. Instil Bio | Aptose Biosciences vs. Spero Therapeutics | Aptose Biosciences vs. Assembly Biosciences |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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