Correlation Between Intermap Technologies and Aptose Biosciences

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

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

Diversification Opportunities for Intermap Technologies and Aptose Biosciences

-0.77

Correlation Coefficient

Intermap Technologies  Aptose Biosciences

Pay attention - limited upside

The 3 months correlation between Intermap and Aptose is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences and Intermap Technologies 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 Intermap Technologies Corp 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 Intermap Technologies i.e., Intermap Technologies and Aptose Biosciences go up and down completely randomly.

Pair Corralation between Intermap Technologies and Aptose Biosciences

Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 0.76 times more return on investment than Aptose Biosciences. However, Intermap Technologies Corp is 1.31 times less risky than Aptose Biosciences. It trades about 0.13 of its potential returns per unit of risk. Aptose Biosciences is currently generating about -0.1 per unit of risk. If you would invest  45.00  in Intermap Technologies Corp on October 11, 2024 and sell it today you would earn a total of  166.00  from holding Intermap Technologies Corp or generate 368.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.3%
Values	Daily Returns

Intermap Technologies Corp  vs.  Aptose Biosciences

Intermap Technologies

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intermap Technologies Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Intermap Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Aptose Biosciences

Risk-Adjusted Performance

0 of 100

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

Pair Trading with Intermap Technologies and Aptose Biosciences

The main advantage of trading using opposite Intermap Technologies and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies 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 Intermap Technologies Corp 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.