Correlation Between PureTech Health and OneSavings Bank

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

Diversification Opportunities for PureTech Health and OneSavings Bank

0.31

Correlation Coefficient

PureTech Health  OneSavings Bank

Weak diversification

The 3 months correlation between PureTech and OneSavings is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc and OneSavings Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSavings Bank PLC 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 OneSavings Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSavings Bank PLC has no effect on the direction of PureTech Health i.e., PureTech Health and OneSavings Bank go up and down completely randomly.

Pair Corralation between PureTech Health and OneSavings Bank

Assuming the 90 days trading horizon PureTech Health is expected to generate 2.02 times less return on investment than OneSavings Bank. In addition to that, PureTech Health is 1.77 times more volatile than OneSavings Bank PLC. It trades about 0.1 of its total potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.35 per unit of volatility. If you would invest  44,900  in OneSavings Bank PLC on April 23, 2025 and sell it today you would earn a total of  12,100  from holding OneSavings Bank PLC or generate 26.95% return on investment over 90 days.

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

PureTech Health plc  vs.  OneSavings Bank PLC

PureTech Health plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PureTech Health plc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, PureTech Health may actually be approaching a critical reversion point that can send shares even higher in August 2025.

OneSavings Bank PLC

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in OneSavings Bank PLC are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, OneSavings Bank exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PureTech Health and OneSavings Bank

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

The idea behind PureTech Health plc and OneSavings Bank 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.