Correlation Between Knight Transportation and PureTech Health
Can any of the company-specific risk be diversified away by investing in both Knight Transportation 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 Knight Transportation and PureTech Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knight Transportation and PureTech Health plc, you can compare the effects of market volatilities on Knight Transportation 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 Knight Transportation with a short position of PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knight Transportation and PureTech Health.
Diversification Opportunities for Knight Transportation and PureTech Health
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Knight and PureTech is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Knight Transportation 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 Knight Transportation 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 Knight Transportation 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 Knight Transportation i.e., Knight Transportation and PureTech Health go up and down completely randomly.
Pair Corralation between Knight Transportation and PureTech Health
Considering the 90-day investment horizon Knight Transportation is expected to generate 0.86 times more return on investment than PureTech Health. However, Knight Transportation is 1.16 times less risky than PureTech Health. It trades about 0.12 of its potential returns per unit of risk. PureTech Health plc is currently generating about 0.05 per unit of risk. If you would invest 4,261 in Knight Transportation on September 7, 2025 and sell it today you would earn a total of 869.00 from holding Knight Transportation or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knight Transportation vs. PureTech Health plc
Performance |
| Timeline |
| Knight Transportation |
| PureTech Health plc |
Knight Transportation and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knight Transportation and PureTech Health
The main advantage of trading using opposite Knight Transportation and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knight Transportation 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.| Knight Transportation vs. Heritage Insurance Hldgs | Knight Transportation vs. Robinsons Retail Holdings | Knight Transportation vs. Plaza Retail REIT | Knight Transportation vs. Costco Wholesale Corp |
| PureTech Health vs. Novo Nordisk AS | PureTech Health vs. Novo Nordisk AS | PureTech Health vs. Vertex Pharmaceuticals | PureTech Health vs. CSL |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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