Correlation Between PureTech Health and TARGET

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

Diversification Opportunities for PureTech Health and TARGET

0.05

Correlation Coefficient

PureTech Health  TARGET

Significant diversification

The 3 months correlation between PureTech and TARGET is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc and TARGET PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TARGET PORATION 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 TARGET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TARGET PORATION has no effect on the direction of PureTech Health i.e., PureTech Health and TARGET go up and down completely randomly.

Pair Corralation between PureTech Health and TARGET

Assuming the 90 days horizon PureTech Health plc is expected to generate 7.82 times more return on investment than TARGET. However, PureTech Health is 7.82 times more volatile than TARGET PORATION. It trades about 0.0 of its potential returns per unit of risk. TARGET PORATION is currently generating about -0.03 per unit of risk. If you would invest  190.00  in PureTech Health plc on September 16, 2025 and sell it today you would lose (22.00) from holding PureTech Health plc or give up 11.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.35%
Values	Daily Returns

PureTech Health plc  vs.  TARGET PORATION

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 fragile technical indicators, PureTech Health may actually be approaching a critical reversion point that can send shares even higher in January 2026.

TARGET PORATION

Risk-Adjusted Performance

Weakest

Over the last 90 days TARGET PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TARGET is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PureTech Health and TARGET

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

The idea behind PureTech Health plc and TARGET PORATION 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.