Correlation Between Exxon and Aptose Biosciences

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

By analyzing existing cross correlation between EXXON MOBIL CDR and Aptose Biosciences, you can compare the effects of market volatilities on Exxon 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 Exxon with a short position of Aptose Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Aptose Biosciences.

Diversification Opportunities for Exxon and Aptose Biosciences

-0.46

Correlation Coefficient

Exxon  Aptose Biosciences

Very good diversification

The 3 months correlation between Exxon and Aptose is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding EXXON MOBIL CDR and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences and Exxon 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 EXXON MOBIL CDR 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 Exxon i.e., Exxon and Aptose Biosciences go up and down completely randomly.

Pair Corralation between Exxon and Aptose Biosciences

Assuming the 90 days trading horizon EXXON MOBIL CDR is expected to generate 0.14 times more return on investment than Aptose Biosciences. However, EXXON MOBIL CDR is 7.13 times less risky than Aptose Biosciences. It trades about 0.01 of its potential returns per unit of risk. Aptose Biosciences is currently generating about -0.01 per unit of risk. If you would invest  1,993  in EXXON MOBIL CDR on April 22, 2025 and sell it today you would lose (1.00) from holding EXXON MOBIL CDR or give up 0.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

EXXON MOBIL CDR  vs.  Aptose Biosciences

EXXON MOBIL CDR

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Exxon and Aptose Biosciences

The main advantage of trading using opposite Exxon and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon 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.

The idea behind EXXON MOBIL CDR and Aptose Biosciences 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.