Correlation Between Super Micro and Pure Storage
Can any of the company-specific risk be diversified away by investing in both Super Micro and Pure Storage 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 Super Micro and Pure Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Micro Computer and Pure Storage, you can compare the effects of market volatilities on Super Micro and Pure Storage 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 Super Micro with a short position of Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Pure Storage.
Diversification Opportunities for Super Micro and Pure Storage
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Super and Pure is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage and Super Micro 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 Super Micro Computer are associated (or correlated) with Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of Super Micro i.e., Super Micro and Pure Storage go up and down completely randomly.
Pair Corralation between Super Micro and Pure Storage
Given the investment horizon of 90 days Super Micro Computer is expected to under-perform the Pure Storage. But the stock apears to be less risky and, when comparing its historical volatility, Super Micro Computer is 1.23 times less risky than Pure Storage. The stock trades about -0.07 of its potential returns per unit of risk. The Pure Storage is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5,848 in Pure Storage on August 17, 2025 and sell it today you would earn a total of 2,611 from holding Pure Storage or generate 44.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Micro Computer vs. Pure Storage
Performance |
| Timeline |
| Super Micro Computer |
| Pure Storage |
Super Micro and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Micro and Pure Storage
The main advantage of trading using opposite Super Micro and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Micro position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.| Super Micro vs. Pure Storage | Super Micro vs. HP Inc | Super Micro vs. Hewlett Packard Enterprise | Super Micro vs. NetApp Inc |
| Pure Storage vs. Super Micro Computer | Pure Storage vs. Astera Labs, Common | Pure Storage vs. Fidelity National Information | Pure Storage vs. Credo Technology Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |