Correlation Between Pure Harvest and Affinor Growers

Can any of the company-specific risk be diversified away by investing in both Pure Harvest and Affinor Growers 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 Harvest and Affinor Growers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pure Harvest Cannabis and Affinor Growers, you can compare the effects of market volatilities on Pure Harvest and Affinor Growers 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 Harvest with a short position of Affinor Growers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Harvest and Affinor Growers.

Diversification Opportunities for Pure Harvest and Affinor Growers

-0.4

Correlation Coefficient

Pure Harvest  Affinor Growers

Very good diversification

The 3 months correlation between Pure and Affinor is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pure Harvest Cannabis and Affinor Growers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affinor Growers and Pure Harvest 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 Harvest Cannabis are associated (or correlated) with Affinor Growers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affinor Growers has no effect on the direction of Pure Harvest i.e., Pure Harvest and Affinor Growers go up and down completely randomly.

Pair Corralation between Pure Harvest and Affinor Growers

Given the investment horizon of 90 days Pure Harvest Cannabis is expected to generate 2.14 times more return on investment than Affinor Growers. However, Pure Harvest is 2.14 times more volatile than Affinor Growers. It trades about 0.12 of its potential returns per unit of risk. Affinor Growers is currently generating about 0.0 per unit of risk. If you would invest  0.26  in Pure Harvest Cannabis on May 21, 2025 and sell it today you would earn a total of  0.14  from holding Pure Harvest Cannabis or generate 53.85% return on investment over 90 days.

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

Pure Harvest Cannabis  vs.  Affinor Growers

Pure Harvest Cannabis

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pure Harvest Cannabis are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Pure Harvest reported solid returns over the last few months and may actually be approaching a breakup point.

Affinor Growers

Risk-Adjusted Performance

Weakest

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

Pair Trading with Pure Harvest and Affinor Growers

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

The idea behind Pure Harvest Cannabis and Affinor Growers 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.