Correlation Between Leveljump Healthcare and Aptose Biosciences

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

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

Diversification Opportunities for Leveljump Healthcare and Aptose Biosciences

0.0

Correlation Coefficient

Leveljump Healthcare  Aptose Biosciences

Pay attention - limited upside

The 3 months correlation between Leveljump and Aptose is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leveljump Healthcare Corp and Aptose Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptose Biosciences and Leveljump Healthcare 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 Leveljump Healthcare 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 Leveljump Healthcare i.e., Leveljump Healthcare and Aptose Biosciences go up and down completely randomly.

Pair Corralation between Leveljump Healthcare and Aptose Biosciences

Assuming the 90 days trading horizon Leveljump Healthcare Corp is expected to generate 0.69 times more return on investment than Aptose Biosciences. However, Leveljump Healthcare Corp is 1.46 times less risky than Aptose Biosciences. It trades about -0.03 of its potential returns per unit of risk. Aptose Biosciences is currently generating about -0.1 per unit of risk. If you would invest  9.50  in Leveljump Healthcare Corp on October 14, 2024 and sell it today you would lose (4.50) from holding Leveljump Healthcare Corp or give up 47.37% of portfolio value over 90 days.

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

Leveljump Healthcare Corp  vs.  Aptose Biosciences

Leveljump Healthcare Corp

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Leveljump Healthcare Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Leveljump Healthcare is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Leveljump Healthcare and Aptose Biosciences

The main advantage of trading using opposite Leveljump Healthcare and Aptose Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leveljump Healthcare 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 Leveljump Healthcare 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.