Correlation Between KP Tissue and Burcon NutraScience
Can any of the company-specific risk be diversified away by investing in both KP Tissue 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 KP Tissue and Burcon NutraScience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KP Tissue and Burcon NutraScience, you can compare the effects of market volatilities on KP Tissue 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 KP Tissue with a short position of Burcon NutraScience. Check out your portfolio center. Please also check ongoing floating volatility patterns of KP Tissue and Burcon NutraScience.
Diversification Opportunities for KP Tissue and Burcon NutraScience
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KPT and Burcon is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding KP Tissue and Burcon NutraScience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burcon NutraScience and KP Tissue 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 KP Tissue 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 KP Tissue i.e., KP Tissue and Burcon NutraScience go up and down completely randomly.
Pair Corralation between KP Tissue and Burcon NutraScience
Assuming the 90 days trading horizon KP Tissue is expected to generate 0.22 times more return on investment than Burcon NutraScience. However, KP Tissue is 4.56 times less risky than Burcon NutraScience. It trades about 0.1 of its potential returns per unit of risk. Burcon NutraScience is currently generating about -0.15 per unit of risk. If you would invest 937.00 in KP Tissue on August 27, 2025 and sell it today you would earn a total of 57.00 from holding KP Tissue or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KP Tissue vs. Burcon NutraScience
Performance |
| Timeline |
| KP Tissue |
| Burcon NutraScience |
KP Tissue and Burcon NutraScience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KP Tissue and Burcon NutraScience
The main advantage of trading using opposite KP Tissue and Burcon NutraScience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KP Tissue 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.| KP Tissue vs. Rogers Communications | KP Tissue vs. Plantify Foods | KP Tissue vs. Element Fleet Management | KP Tissue vs. Glacier Media |
| Burcon NutraScience vs. GreenLight Metals | Burcon NutraScience vs. DIRTT Environmental Solutions | Burcon NutraScience vs. Talon Metals Corp | Burcon NutraScience vs. Algoma Steel 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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