Correlation Between Grand Vision and PureTech Health
Can any of the company-specific risk be diversified away by investing in both Grand Vision 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 Grand Vision and PureTech Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Vision Media and PureTech Health plc, you can compare the effects of market volatilities on Grand Vision 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 Grand Vision with a short position of PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and PureTech Health.
Diversification Opportunities for Grand Vision and PureTech Health
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and PureTech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media 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 Grand Vision 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 Grand Vision Media 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 Grand Vision i.e., Grand Vision and PureTech Health go up and down completely randomly.
Pair Corralation between Grand Vision and PureTech Health
Assuming the 90 days trading horizon Grand Vision Media is expected to generate 14.52 times more return on investment than PureTech Health. However, Grand Vision is 14.52 times more volatile than PureTech Health plc. It trades about 0.05 of its potential returns per unit of risk. PureTech Health plc is currently generating about -0.03 per unit of risk. If you would invest 20.00 in Grand Vision Media on September 4, 2024 and sell it today you would earn a total of 78.00 from holding Grand Vision Media or generate 390.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Vision Media vs. PureTech Health plc
Performance |
| Timeline |
| Grand Vision Media |
| PureTech Health plc |
Grand Vision and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Vision and PureTech Health
The main advantage of trading using opposite Grand Vision and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision 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.| Grand Vision vs. Samsung Electronics Co | Grand Vision vs. Samsung Electronics Co | Grand Vision vs. Hyundai Motor | Grand Vision vs. Toyota Motor Corp |
| PureTech Health vs. SupplyMe Capital PLC | PureTech Health vs. SM Energy Co | PureTech Health vs. FuelCell Energy | PureTech Health vs. Grand Vision Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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