Correlation Between Aptose Biosciences and Medexus Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Aptose Biosciences and Medexus Pharmaceuticals 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 Medexus Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aptose Biosciences and Medexus Pharmaceuticals, you can compare the effects of market volatilities on Aptose Biosciences and Medexus Pharmaceuticals 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 Medexus Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptose Biosciences and Medexus Pharmaceuticals.

Diversification Opportunities for Aptose Biosciences and Medexus Pharmaceuticals

-0.8

Correlation Coefficient

Aptose Biosciences  Medexus Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Aptose and Medexus is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Medexus Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medexus Pharmaceuticals 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 Medexus Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medexus Pharmaceuticals has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Medexus Pharmaceuticals go up and down completely randomly.

Pair Corralation between Aptose Biosciences and Medexus Pharmaceuticals

Assuming the 90 days trading horizon Aptose Biosciences is expected to under-perform the Medexus Pharmaceuticals. In addition to that, Aptose Biosciences is 3.14 times more volatile than Medexus Pharmaceuticals. It trades about 0.0 of its total potential returns per unit of risk. Medexus Pharmaceuticals is currently generating about 0.04 per unit of volatility. If you would invest  260.00  in Medexus Pharmaceuticals on April 23, 2025 and sell it today you would earn a total of  14.00  from holding Medexus Pharmaceuticals or generate 5.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Aptose Biosciences  vs.  Medexus Pharmaceuticals

Aptose Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aptose Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Aptose Biosciences is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Medexus Pharmaceuticals

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Medexus Pharmaceuticals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Medexus Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Aptose Biosciences and Medexus Pharmaceuticals

The main advantage of trading using opposite Aptose Biosciences and Medexus Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptose Biosciences position performs unexpectedly, Medexus Pharmaceuticals 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 Medexus Pharmaceuticals will offset losses from the drop in Medexus Pharmaceuticals' long position.

The idea behind Aptose Biosciences and Medexus Pharmaceuticals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.