Correlation Between Aptose Biosciences and Precigen

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

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

Diversification Opportunities for Aptose Biosciences and Precigen

-0.75

Correlation Coefficient

Aptose Biosciences  Precigen

Pay attention - limited upside

The 3 months correlation between Aptose and Precigen is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aptose Biosciences and Precigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precigen 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 Precigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precigen has no effect on the direction of Aptose Biosciences i.e., Aptose Biosciences and Precigen go up and down completely randomly.

Pair Corralation between Aptose Biosciences and Precigen

Given the investment horizon of 90 days Aptose Biosciences is expected to under-perform the Precigen. In addition to that, Aptose Biosciences is 1.25 times more volatile than Precigen. It trades about -0.11 of its total potential returns per unit of risk. Precigen is currently generating about 0.24 per unit of volatility. If you would invest  76.00  in Precigen on December 20, 2024 and sell it today you would earn a total of  103.00  from holding Precigen or generate 135.53% return on investment over 90 days.

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

Aptose Biosciences  vs.  Precigen

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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Precigen

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Precigen are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Precigen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aptose Biosciences and Precigen

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

The idea behind Aptose Biosciences and Precigen 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.