Correlation Between Samsung Electronics and PureTech Health

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

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

Diversification Opportunities for Samsung Electronics and PureTech Health

0.27

Correlation Coefficient

Samsung Electronics  PureTech Health

Modest diversification

The 3 months correlation between Samsung and PureTech is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co 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 Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and PureTech Health go up and down completely randomly.

Pair Corralation between Samsung Electronics and PureTech Health

Assuming the 90 days trading horizon Samsung Electronics is expected to generate 1.61 times less return on investment than PureTech Health. But when comparing it to its historical volatility, Samsung Electronics Co is 1.89 times less risky than PureTech Health. It trades about 0.15 of its potential returns per unit of risk. PureTech Health plc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  10,300  in PureTech Health plc on April 10, 2025 and sell it today you would earn a total of  2,480  from holding PureTech Health plc or generate 24.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Samsung Electronics Co  vs.  PureTech Health plc

Samsung Electronics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung Electronics Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Samsung Electronics unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, PureTech Health unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and PureTech Health

The main advantage of trading using opposite Samsung Electronics and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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 Samsung Electronics Co 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.