Correlation Between Colabor and Burcon NutraScience
Can any of the company-specific risk be diversified away by investing in both Colabor and Burcon NutraScience 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 Colabor and Burcon NutraScience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colabor Group and Burcon NutraScience, you can compare the effects of market volatilities on Colabor and Burcon NutraScience 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 Colabor with a short position of Burcon NutraScience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colabor and Burcon NutraScience.
Diversification Opportunities for Colabor and Burcon NutraScience
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Colabor and Burcon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Colabor Group and Burcon NutraScience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcon NutraScience and Colabor 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 Colabor Group are associated (or correlated) with Burcon NutraScience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burcon NutraScience has no effect on the direction of Colabor i.e., Colabor and Burcon NutraScience go up and down completely randomly.
Pair Corralation between Colabor and Burcon NutraScience
Assuming the 90 days trading horizon Colabor Group is expected to under-perform the Burcon NutraScience. In addition to that, Colabor is 2.04 times more volatile than Burcon NutraScience. It trades about -0.2 of its total potential returns per unit of risk. Burcon NutraScience is currently generating about -0.06 per unit of volatility. If you would invest 273.00 in Burcon NutraScience on August 13, 2025 and sell it today you would lose (51.00) from holding Burcon NutraScience or give up 18.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Colabor Group vs. Burcon NutraScience
Performance |
| Timeline |
| Colabor Group |
| Burcon NutraScience |
Colabor and Burcon NutraScience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colabor and Burcon NutraScience
The main advantage of trading using opposite Colabor and Burcon NutraScience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colabor position performs unexpectedly, Burcon NutraScience 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 Burcon NutraScience will offset losses from the drop in Burcon NutraScience's long position.| Colabor vs. Big Rock Brewery | Colabor vs. Century Global Commodities | Colabor vs. Burcon NutraScience | Colabor vs. Else Nutrition Holdings |
| Burcon NutraScience vs. Pesorama | Burcon NutraScience vs. Swiss Water Decaffeinated | Burcon NutraScience vs. Big Rock Brewery | Burcon NutraScience vs. Colabor Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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