Correlation Between Burcon NutraScience and Century Global
Can any of the company-specific risk be diversified away by investing in both Burcon NutraScience and Century Global 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 Century Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burcon NutraScience and Century Global Commodities, you can compare the effects of market volatilities on Burcon NutraScience and Century Global 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 Century Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burcon NutraScience and Century Global.
Diversification Opportunities for Burcon NutraScience and Century Global
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Burcon and Century is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Burcon NutraScience and Century Global Commodities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Global Commo 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 are associated (or correlated) with Century Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Global Commo has no effect on the direction of Burcon NutraScience i.e., Burcon NutraScience and Century Global go up and down completely randomly.
Pair Corralation between Burcon NutraScience and Century Global
Assuming the 90 days horizon Burcon NutraScience is expected to under-perform the Century Global. But the stock apears to be less risky and, when comparing its historical volatility, Burcon NutraScience is 1.82 times less risky than Century Global. The stock trades about -0.1 of its potential returns per unit of risk. The Century Global Commodities is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Century Global Commodities on August 26, 2025 and sell it today you would earn a total of 0.00 from holding Century Global Commodities or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burcon NutraScience vs. Century Global Commodities
Performance |
| Timeline |
| Burcon NutraScience |
| Century Global Commo |
Burcon NutraScience and Century Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burcon NutraScience and Century Global
The main advantage of trading using opposite Burcon NutraScience and Century Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burcon NutraScience position performs unexpectedly, Century Global 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 Century Global will offset losses from the drop in Century Global's long position.| Burcon NutraScience vs. GreenLight Metals | Burcon NutraScience vs. DIRTT Environmental Solutions | Burcon NutraScience vs. Talon Metals Corp | Burcon NutraScience vs. Algoma Steel Group |
| Century Global vs. Northstar Clean Technologies | Century Global vs. American CuMo Mining | Century Global vs. Mako Mining Corp | Century Global vs. CVW CleanTech |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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