Correlation Between Burcon NutraScience and Clean Seas

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

Diversification Opportunities for Burcon NutraScience and Clean Seas

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Burcon NutraScience and Clean Seas

If you would invest  8.00  in Clean Seas Seafood on August 13, 2025 and sell it today you would earn a total of  0.00  from holding Clean Seas Seafood or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

Burcon NutraScience Corp  vs.  Clean Seas Seafood

 Performance 
       Timeline  
Burcon NutraScience Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Burcon NutraScience Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Clean Seas Seafood 

Risk-Adjusted Performance

Weakest

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

Burcon NutraScience and Clean Seas Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Burcon NutraScience and Clean Seas

The main advantage of trading using opposite Burcon NutraScience and Clean Seas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burcon NutraScience position performs unexpectedly, Clean Seas 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 Clean Seas will offset losses from the drop in Clean Seas' long position.
The idea behind Burcon NutraScience Corp and Clean Seas Seafood 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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