Correlation Between Aptose Biosciences and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences and MAIA Biotechnology 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 MAIA Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptose Biosciences and MAIA Biotechnology, you can compare the effects of market volatilities on Aptose Biosciences and MAIA Biotechnology 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 MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and MAIA Biotechnology.
Diversification Opportunities for Aptose Biosciences and MAIA Biotechnology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aptose and MAIA is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology 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 MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between Aptose Biosciences and MAIA Biotechnology
Given the investment horizon of 90 days Aptose Biosciences is expected to under-perform the MAIA Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Aptose Biosciences is 1.2 times less risky than MAIA Biotechnology. The stock trades about -0.3 of its potential returns per unit of risk. The MAIA Biotechnology is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 223.00 in MAIA Biotechnology on November 4, 2024 and sell it today you would lose (35.00) from holding MAIA Biotechnology or give up 15.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptose Biosciences vs. MAIA Biotechnology
Performance |
| Timeline |
| Aptose Biosciences |
| MAIA Biotechnology |
Aptose Biosciences and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptose Biosciences and MAIA Biotechnology
The main advantage of trading using opposite Aptose Biosciences and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology's long position.| Aptose Biosciences vs. CytomX Therapeutics | Aptose Biosciences vs. Instil Bio | Aptose Biosciences vs. Spero Therapeutics | Aptose Biosciences vs. Assembly Biosciences |
| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar Therapeutics |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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