Correlation Between Schweiter Technologies and PureTech Health
Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and PureTech Health 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 Schweiter Technologies and PureTech Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweiter Technologies AG and PureTech Health plc, you can compare the effects of market volatilities on Schweiter Technologies and PureTech Health 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 Schweiter Technologies with a short position of PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and PureTech Health.
Diversification Opportunities for Schweiter Technologies and PureTech Health
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Schweiter and PureTech is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies AG and PureTech Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PureTech Health plc and Schweiter 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 Schweiter Technologies AG are associated (or correlated) with PureTech Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PureTech Health plc has no effect on the direction of Schweiter Technologies i.e., Schweiter Technologies and PureTech Health go up and down completely randomly.
Pair Corralation between Schweiter Technologies and PureTech Health
Assuming the 90 days trading horizon Schweiter Technologies AG is expected to under-perform the PureTech Health. But the stock apears to be less risky and, when comparing its historical volatility, Schweiter Technologies AG is 1.36 times less risky than PureTech Health. The stock trades about -0.06 of its potential returns per unit of risk. The PureTech Health plc is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 28,450 in PureTech Health plc on September 2, 2024 and sell it today you would lose (11,770) from holding PureTech Health plc or give up 41.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Schweiter Technologies AG vs. PureTech Health plc
Performance |
| Timeline |
| Schweiter Technologies |
| PureTech Health plc |
Schweiter Technologies and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweiter Technologies and PureTech Health
The main advantage of trading using opposite Schweiter Technologies and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies position performs unexpectedly, PureTech Health 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 PureTech Health will offset losses from the drop in PureTech Health's long position.| Schweiter Technologies vs. Charter Communications Cl | Schweiter Technologies vs. Naturhouse Health SA | Schweiter Technologies vs. Aeorema Communications Plc | Schweiter Technologies vs. Abingdon Health Plc |
| PureTech Health vs. Home Depot | PureTech Health vs. Weiss Korea Opportunity | PureTech Health vs. River and Mercantile | PureTech Health vs. Sherborne Investors Guernsey |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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