Correlation Between Pure Storage and AMAG Austria

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

By analyzing existing cross correlation between Pure Storage and AMAG Austria Metall, you can compare the effects of market volatilities on Pure Storage and AMAG Austria 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 Pure Storage with a short position of AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and AMAG Austria.

Diversification Opportunities for Pure Storage and AMAG Austria

0.09

Correlation Coefficient

Pure Storage  AMAG Austria

Significant diversification

The 3 months correlation between Pure and AMAG is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall and Pure Storage 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 Pure Storage are associated (or correlated) with AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of Pure Storage i.e., Pure Storage and AMAG Austria go up and down completely randomly.

Pair Corralation between Pure Storage and AMAG Austria

Assuming the 90 days horizon Pure Storage is expected to generate 1.43 times more return on investment than AMAG Austria. However, Pure Storage is 1.43 times more volatile than AMAG Austria Metall. It trades about 0.2 of its potential returns per unit of risk. AMAG Austria Metall is currently generating about 0.05 per unit of risk. If you would invest  3,510  in Pure Storage on April 20, 2025 and sell it today you would earn a total of  1,422  from holding Pure Storage or generate 40.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Pure Storage  vs.  AMAG Austria Metall

Pure Storage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pure Storage are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Pure Storage reported solid returns over the last few months and may actually be approaching a breakup point.

AMAG Austria Metall

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AMAG Austria Metall are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, AMAG Austria may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Pure Storage and AMAG Austria

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

The idea behind Pure Storage and AMAG Austria Metall 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.