Correlation Between PureTech Health and Iron Mountain

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

Diversification Opportunities for PureTech Health and Iron Mountain

0.38

Correlation Coefficient

PureTech Health  Iron Mountain

Weak diversification

The 3 months correlation between PureTech and Iron is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc and Iron Mountain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Mountain 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 Iron Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Mountain has no effect on the direction of PureTech Health i.e., PureTech Health and Iron Mountain go up and down completely randomly.

Pair Corralation between PureTech Health and Iron Mountain

Assuming the 90 days trading horizon PureTech Health is expected to generate 3.91 times less return on investment than Iron Mountain. In addition to that, PureTech Health is 1.41 times more volatile than Iron Mountain. It trades about 0.04 of its total potential returns per unit of risk. Iron Mountain is currently generating about 0.2 per unit of volatility. If you would invest  8,239  in Iron Mountain on April 22, 2025 and sell it today you would earn a total of  1,701  from holding Iron Mountain or generate 20.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.92%
Values	Daily Returns

PureTech Health plc  vs.  Iron Mountain

PureTech Health plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PureTech Health plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, PureTech Health is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Iron Mountain

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Iron Mountain are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Iron Mountain unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PureTech Health and Iron Mountain

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

The idea behind PureTech Health plc and Iron Mountain 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.