Correlation Between Aptose Biosciences and Theratechnologies

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

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

Diversification Opportunities for Aptose Biosciences and Theratechnologies

0.24

Correlation Coefficient

Aptose Biosciences  Theratechnologies

Modest diversification

The 3 months correlation between Aptose and Theratechnologies is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Theratechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theratechnologies 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 Theratechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theratechnologies has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Theratechnologies go up and down completely randomly.

Pair Corralation between Aptose Biosciences and Theratechnologies

Assuming the 90 days trading horizon Aptose Biosciences is expected to generate 1.21 times less return on investment than Theratechnologies. In addition to that, Aptose Biosciences is 2.29 times more volatile than Theratechnologies. It trades about 0.02 of its total potential returns per unit of risk. Theratechnologies is currently generating about 0.05 per unit of volatility. If you would invest  391.00  in Theratechnologies on April 24, 2025 and sell it today you would earn a total of  38.00  from holding Theratechnologies or generate 9.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Aptose Biosciences  vs.  Theratechnologies

Aptose Biosciences

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aptose Biosciences are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Aptose Biosciences may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Theratechnologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Theratechnologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Theratechnologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aptose Biosciences and Theratechnologies

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

The idea behind Aptose Biosciences and Theratechnologies 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..