Correlation Between Pure Storage and Warehouse Group

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Can any of the company-specific risk be diversified away by investing in both Pure Storage and Warehouse Group 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 Pure Storage and Warehouse Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Storage and Warehouse Group, you can compare the effects of market volatilities on Pure Storage and Warehouse Group 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 Pure Storage with a short position of Warehouse Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and Warehouse Group.

Diversification Opportunities for Pure Storage and Warehouse Group

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Pure and Warehouse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage and Warehouse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouse Group and Pure Storage 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 Pure Storage are associated (or correlated) with Warehouse Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouse Group has no effect on the direction of Pure Storage i.e., Pure Storage and Warehouse Group go up and down completely randomly.

Pair Corralation between Pure Storage and Warehouse Group

If you would invest  7,747  in Pure Storage on September 2, 2025 and sell it today you would earn a total of  1,149  from holding Pure Storage or generate 14.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Pure Storage  vs.  Warehouse Group

 Performance 
       Timeline  
Pure Storage 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Pure Storage are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Pure Storage reported solid returns over the last few months and may actually be approaching a breakup point.
Warehouse Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Warehouse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Warehouse Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pure Storage and Warehouse Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pure Storage and Warehouse Group

The main advantage of trading using opposite Pure Storage and Warehouse Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Storage position performs unexpectedly, Warehouse Group 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 Warehouse Group will offset losses from the drop in Warehouse Group's long position.
The idea behind Pure Storage and Warehouse Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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