Correlation Between Aptose Biosciences and Appili Therapeutics

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

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

Diversification Opportunities for Aptose Biosciences and Appili Therapeutics

0.14

Correlation Coefficient

Aptose Biosciences  Appili Therapeutics

Average diversification

The 3 months correlation between Aptose and Appili is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Appili Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appili Therapeutics 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 Appili Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appili Therapeutics has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Appili Therapeutics go up and down completely randomly.

Pair Corralation between Aptose Biosciences and Appili Therapeutics

Assuming the 90 days trading horizon Aptose Biosciences is expected to generate 5.05 times less return on investment than Appili Therapeutics. But when comparing it to its historical volatility, Aptose Biosciences is 6.47 times less risky than Appili Therapeutics. It trades about 0.14 of its potential returns per unit of risk. Appili Therapeutics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1.50  in Appili Therapeutics on September 6, 2025 and sell it today you would earn a total of  1.00  from holding Appili Therapeutics or generate 66.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aptose Biosciences  vs.  Appili Therapeutics

Aptose Biosciences

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Aptose Biosciences are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Aptose Biosciences displayed solid returns over the last few months and may actually be approaching a breakup point.

Appili Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Appili Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Appili Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aptose Biosciences and Appili Therapeutics

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

The idea behind Aptose Biosciences and Appili Therapeutics 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.