Correlation Between PureTech Health and Advanced Biomedical

Can any of the company-specific risk be diversified away by investing in both PureTech Health and Advanced Biomedical 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 Advanced Biomedical 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 Advanced Biomedical Technologies, you can compare the effects of market volatilities on PureTech Health and Advanced Biomedical 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 Advanced Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureTech Health and Advanced Biomedical.

Diversification Opportunities for PureTech Health and Advanced Biomedical

0.13

Correlation Coefficient

PureTech Health  Advanced Biomedical

Average diversification

The 3 months correlation between PureTech and Advanced is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc and Advanced Biomedical Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Biomedical 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 Advanced Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Biomedical has no effect on the direction of PureTech Health i.e., PureTech Health and Advanced Biomedical go up and down completely randomly.

Pair Corralation between PureTech Health and Advanced Biomedical

Assuming the 90 days horizon PureTech Health is expected to generate 9.05 times less return on investment than Advanced Biomedical. But when comparing it to its historical volatility, PureTech Health plc is 3.95 times less risky than Advanced Biomedical. It trades about 0.05 of its potential returns per unit of risk. Advanced Biomedical Technologies is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Advanced Biomedical Technologies on September 2, 2025 and sell it today you would earn a total of  0.01  from holding Advanced Biomedical Technologies or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

PureTech Health plc  vs.  Advanced Biomedical Technologi

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 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical indicators, PureTech Health may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Advanced Biomedical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Biomedical Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, Advanced Biomedical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PureTech Health and Advanced Biomedical

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

The idea behind PureTech Health plc and Advanced Biomedical Technologies 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.