Correlation Between AfriTin Mining and PureTech Health

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

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

Diversification Opportunities for AfriTin Mining and PureTech Health

-0.49

Correlation Coefficient

AfriTin Mining  PureTech Health

Very good diversification

The 3 months correlation between AfriTin and PureTech is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining i.e., AfriTin Mining and PureTech Health go up and down completely randomly.

Pair Corralation between AfriTin Mining and PureTech Health

Assuming the 90 days trading horizon AfriTin Mining is expected to generate 1.36 times more return on investment than PureTech Health. However, AfriTin Mining is 1.36 times more volatile than PureTech Health plc. It trades about 0.03 of its potential returns per unit of risk. PureTech Health plc is currently generating about 0.04 per unit of risk. If you would invest  270.00  in AfriTin Mining on April 20, 2025 and sell it today you would earn a total of  10.00  from holding AfriTin Mining or generate 3.7% return on investment over 90 days.

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

AfriTin Mining  vs.  PureTech Health plc

AfriTin Mining

Risk-Adjusted Performance

Weak

Over the last 90 days AfriTin Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak technical and fundamental indicators, AfriTin Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

PureTech Health plc

Risk-Adjusted Performance

Weak

Over the last 90 days PureTech Health plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PureTech Health is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AfriTin Mining and PureTech Health

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

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.