Correlation Between PureTech Health and Crinetics Pharmaceuticals

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

By analyzing existing cross correlation between PureTech Health PLC and Crinetics Pharmaceuticals, you can compare the effects of market volatilities on PureTech Health and Crinetics Pharmaceuticals 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 PureTech Health with a short position of Crinetics Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureTech Health and Crinetics Pharmaceuticals.

Diversification Opportunities for PureTech Health and Crinetics Pharmaceuticals

0.34

Correlation Coefficient

PureTech Health  Crinetics Pharmaceuticals

Weak diversification

The 3 months correlation between PureTech and Crinetics is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health PLC and Crinetics Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crinetics Pharmaceuticals and PureTech Health 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 PureTech Health PLC are associated (or correlated) with Crinetics Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crinetics Pharmaceuticals has no effect on the direction of PureTech Health i.e., PureTech Health and Crinetics Pharmaceuticals go up and down completely randomly.

Pair Corralation between PureTech Health and Crinetics Pharmaceuticals

Given the investment horizon of 90 days PureTech Health PLC is expected to generate 1.1 times more return on investment than Crinetics Pharmaceuticals. However, PureTech Health is 1.1 times more volatile than Crinetics Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. Crinetics Pharmaceuticals is currently generating about 0.02 per unit of risk. If you would invest  1,780  in PureTech Health PLC on May 28, 2025 and sell it today you would earn a total of  120.00  from holding PureTech Health PLC or generate 6.74% return on investment over 90 days.

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

PureTech Health PLC  vs.  Crinetics Pharmaceuticals

PureTech Health PLC

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in PureTech Health PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, PureTech Health may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Crinetics Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crinetics Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Crinetics Pharmaceuticals is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PureTech Health and Crinetics Pharmaceuticals

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

The idea behind PureTech Health PLC and Crinetics Pharmaceuticals 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.