Correlation Between Replimune and PureTech Health

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

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

Diversification Opportunities for Replimune and PureTech Health

0.08

Correlation Coefficient

Replimune  PureTech Health

Significant diversification

The 3 months correlation between Replimune and PureTech is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Replimune Group 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 Replimune 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 Replimune Group 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 Replimune i.e., Replimune and PureTech Health go up and down completely randomly.

Pair Corralation between Replimune and PureTech Health

Given the investment horizon of 90 days Replimune Group is expected to generate 6.22 times more return on investment than PureTech Health. However, Replimune is 6.22 times more volatile than PureTech Health PLC. It trades about 0.06 of its potential returns per unit of risk. PureTech Health PLC is currently generating about 0.05 per unit of risk. If you would invest  820.00  in Replimune Group on May 17, 2025 and sell it today you would lose (311.00) from holding Replimune Group or give up 37.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Replimune Group  vs.  PureTech Health PLC

Replimune Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Replimune Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Replimune disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 unfluctuating basic indicators, PureTech Health may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Replimune and PureTech Health

The main advantage of trading using opposite Replimune and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Replimune 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.

The idea behind Replimune Group and PureTech Health PLC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.