Correlation Between PureBase Corp and Bespoke Extracts

Can any of the company-specific risk be diversified away by investing in both PureBase Corp and Bespoke Extracts 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 PureBase Corp and Bespoke Extracts into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PureBase Corp and Bespoke Extracts, you can compare the effects of market volatilities on PureBase Corp and Bespoke Extracts 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 PureBase Corp with a short position of Bespoke Extracts. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureBase Corp and Bespoke Extracts.

Diversification Opportunities for PureBase Corp and Bespoke Extracts

-0.17

Correlation Coefficient

PureBase Corp  Bespoke Extracts

Good diversification

The 3 months correlation between PureBase and Bespoke is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PureBase Corp and Bespoke Extracts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bespoke Extracts and PureBase Corp 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 PureBase Corp are associated (or correlated) with Bespoke Extracts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bespoke Extracts has no effect on the direction of PureBase Corp i.e., PureBase Corp and Bespoke Extracts go up and down completely randomly.

Pair Corralation between PureBase Corp and Bespoke Extracts

Given the investment horizon of 90 days PureBase Corp is expected to generate 1.11 times less return on investment than Bespoke Extracts. In addition to that, PureBase Corp is 1.3 times more volatile than Bespoke Extracts. It trades about 0.09 of its total potential returns per unit of risk. Bespoke Extracts is currently generating about 0.14 per unit of volatility. If you would invest  11.00  in Bespoke Extracts on May 6, 2025 and sell it today you would earn a total of  10.00  from holding Bespoke Extracts or generate 90.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

PureBase Corp  vs.  Bespoke Extracts

PureBase Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PureBase Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, PureBase Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bespoke Extracts

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bespoke Extracts are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Bespoke Extracts disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PureBase Corp and Bespoke Extracts

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

The idea behind PureBase Corp and Bespoke Extracts 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.