Correlation Between Pure Harvest and Stemsation International

Can any of the company-specific risk be diversified away by investing in both Pure Harvest and Stemsation International 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 Stemsation International 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 Stemsation International, you can compare the effects of market volatilities on Pure Harvest and Stemsation International 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 Stemsation International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Harvest and Stemsation International.

Diversification Opportunities for Pure Harvest and Stemsation International

-0.21

Correlation Coefficient

Pure Harvest  Stemsation International

Very good diversification

The 3 months correlation between Pure and Stemsation is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Pure Harvest Cannabis and Stemsation International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stemsation International 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 Stemsation International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stemsation International has no effect on the direction of Pure Harvest i.e., Pure Harvest and Stemsation International go up and down completely randomly.

Pair Corralation between Pure Harvest and Stemsation International

Given the investment horizon of 90 days Pure Harvest Cannabis is expected to generate 0.82 times more return on investment than Stemsation International. However, Pure Harvest Cannabis is 1.22 times less risky than Stemsation International. It trades about 0.11 of its potential returns per unit of risk. Stemsation International is currently generating about -0.04 per unit of risk. If you would invest  0.30  in Pure Harvest Cannabis on August 4, 2025 and sell it today you would earn a total of  0.16  from holding Pure Harvest Cannabis or generate 53.33% return on investment over 90 days.

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

Pure Harvest Cannabis  vs.  Stemsation International

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 8 (%) 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.

Stemsation International

Risk-Adjusted Performance

Weakest

Over the last 90 days Stemsation International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Pure Harvest and Stemsation International

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

The idea behind Pure Harvest Cannabis and Stemsation International 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.