Correlation Between Oncolytics Biotech and Aptose Biosciences
Can any of the company-specific risk be diversified away by investing in both Oncolytics Biotech and Aptose Biosciences 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 Oncolytics Biotech and Aptose Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncolytics Biotech and Aptose Biosciences, you can compare the effects of market volatilities on Oncolytics Biotech and Aptose Biosciences 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 Oncolytics Biotech with a short position of Aptose Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncolytics Biotech and Aptose Biosciences.
Diversification Opportunities for Oncolytics Biotech and Aptose Biosciences
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oncolytics and Aptose is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Oncolytics Biotech and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences and Oncolytics Biotech 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 Oncolytics Biotech are associated (or correlated) with Aptose Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptose Biosciences has no effect on the direction of Oncolytics Biotech i.e., Oncolytics Biotech and Aptose Biosciences go up and down completely randomly.
Pair Corralation between Oncolytics Biotech and Aptose Biosciences
Assuming the 90 days trading horizon Oncolytics Biotech is expected to under-perform the Aptose Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Oncolytics Biotech is 9.79 times less risky than Aptose Biosciences. The stock trades about -0.01 of its potential returns per unit of risk. The Aptose Biosciences is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Aptose Biosciences on November 4, 2024 and sell it today you would lose (1,324) from holding Aptose Biosciences or give up 98.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.79% |
| Values | Daily Returns |
Oncolytics Biotech vs. Aptose Biosciences
Performance |
| Timeline |
| Oncolytics Biotech |
| Aptose Biosciences |
Oncolytics Biotech and Aptose Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncolytics Biotech and Aptose Biosciences
The main advantage of trading using opposite Oncolytics Biotech and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncolytics Biotech position performs unexpectedly, Aptose Biosciences 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 Aptose Biosciences will offset losses from the drop in Aptose Biosciences' long position.| Oncolytics Biotech vs. Theratechnologies | Oncolytics Biotech vs. Aptose Biosciences | Oncolytics Biotech vs. Resverlogix Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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