Correlation Between Spero Therapeutics and Aptose Biosciences
Can any of the company-specific risk be diversified away by investing in both Spero Therapeutics 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 Spero Therapeutics and Aptose Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spero Therapeutics and Aptose Biosciences, you can compare the effects of market volatilities on Spero Therapeutics 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 Spero Therapeutics with a short position of Aptose Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spero Therapeutics and Aptose Biosciences.
Diversification Opportunities for Spero Therapeutics and Aptose Biosciences
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spero and Aptose is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Spero Therapeutics and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences and Spero Therapeutics 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 Spero Therapeutics 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 Spero Therapeutics i.e., Spero Therapeutics and Aptose Biosciences go up and down completely randomly.
Pair Corralation between Spero Therapeutics and Aptose Biosciences
Given the investment horizon of 90 days Spero Therapeutics is expected to generate 0.41 times more return on investment than Aptose Biosciences. However, Spero Therapeutics is 2.45 times less risky than Aptose Biosciences. It trades about -0.15 of its potential returns per unit of risk. Aptose Biosciences is currently generating about -0.37 per unit of risk. If you would invest 129.00 in Spero Therapeutics on August 28, 2024 and sell it today you would lose (14.00) from holding Spero Therapeutics or give up 10.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spero Therapeutics vs. Aptose Biosciences
Performance |
| Timeline |
| Spero Therapeutics |
| Aptose Biosciences |
Spero Therapeutics and Aptose Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spero Therapeutics and Aptose Biosciences
The main advantage of trading using opposite Spero Therapeutics and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spero Therapeutics 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.| Spero Therapeutics vs. Eliem Therapeutics | Spero Therapeutics vs. HCW Biologics | Spero Therapeutics vs. Scpharmaceuticals | Spero Therapeutics vs. Milestone Pharmaceuticals |
| Aptose Biosciences vs. CytomX Therapeutics | Aptose Biosciences vs. Instil Bio | Aptose Biosciences vs. Spero Therapeutics | Aptose Biosciences vs. Assembly Biosciences |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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