Correlation Between Burcon NutraScience and KP Tissue
Can any of the company-specific risk be diversified away by investing in both Burcon NutraScience and KP Tissue 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 KP Tissue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burcon NutraScience and KP Tissue, you can compare the effects of market volatilities on Burcon NutraScience and KP Tissue 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 KP Tissue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burcon NutraScience and KP Tissue.
Diversification Opportunities for Burcon NutraScience and KP Tissue
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burcon and KPT is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Burcon NutraScience and KP Tissue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KP Tissue 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 KP Tissue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KP Tissue has no effect on the direction of Burcon NutraScience i.e., Burcon NutraScience and KP Tissue go up and down completely randomly.
Pair Corralation between Burcon NutraScience and KP Tissue
Assuming the 90 days horizon Burcon NutraScience is expected to under-perform the KP Tissue. In addition to that, Burcon NutraScience is 4.5 times more volatile than KP Tissue. It trades about -0.1 of its total potential returns per unit of risk. KP Tissue is currently generating about 0.2 per unit of volatility. If you would invest 926.00 in KP Tissue on September 8, 2025 and sell it today you would earn a total of 122.00 from holding KP Tissue or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burcon NutraScience vs. KP Tissue
Performance |
| Timeline |
| Burcon NutraScience |
| KP Tissue |
Burcon NutraScience and KP Tissue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burcon NutraScience and KP Tissue
The main advantage of trading using opposite Burcon NutraScience and KP Tissue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burcon NutraScience position performs unexpectedly, KP Tissue 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 KP Tissue will offset losses from the drop in KP Tissue's long position.| Burcon NutraScience vs. AKITA Drilling | Burcon NutraScience vs. Dream Office Real | Burcon NutraScience vs. Diversified Royalty Corp | Burcon NutraScience vs. Homerun Resources |
| KP Tissue vs. Canadian Utilities Limited | KP Tissue vs. 2028 Investment Grade | KP Tissue vs. VIP Entertainment Technologies | KP Tissue vs. Canlan Ice Sports |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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