Correlation Between Aptose Biosciences and Eliem Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences and Eliem Therapeutics 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 Eliem Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptose Biosciences and Eliem Therapeutics, you can compare the effects of market volatilities on Aptose Biosciences and Eliem Therapeutics 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 Eliem Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and Eliem Therapeutics.
Diversification Opportunities for Aptose Biosciences and Eliem Therapeutics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aptose and Eliem is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Eliem Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eliem Therapeutics 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 Eliem Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eliem Therapeutics has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Eliem Therapeutics go up and down completely randomly.
Pair Corralation between Aptose Biosciences and Eliem Therapeutics
Given the investment horizon of 90 days Aptose Biosciences is expected to under-perform the Eliem Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Aptose Biosciences is 1.3 times less risky than Eliem Therapeutics. The stock trades about -0.15 of its potential returns per unit of risk. The Eliem Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Eliem Therapeutics on August 27, 2024 and sell it today you would lose (40.00) from holding Eliem Therapeutics or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Aptose Biosciences vs. Eliem Therapeutics
Performance |
| Timeline |
| Aptose Biosciences |
| Eliem Therapeutics |
Aptose Biosciences and Eliem Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptose Biosciences and Eliem Therapeutics
The main advantage of trading using opposite Aptose Biosciences and Eliem Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences position performs unexpectedly, Eliem Therapeutics 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 Eliem Therapeutics will offset losses from the drop in Eliem Therapeutics' long position.| Aptose Biosciences vs. CytomX Therapeutics | Aptose Biosciences vs. Instil Bio | Aptose Biosciences vs. Spero Therapeutics | Aptose Biosciences vs. Assembly Biosciences |
| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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