Burcon NutraScience Jensen Alpha
| BU Stock | | | CAD 1.92 -0.20 -9.43% |
Jensen Alpha measures the return attributable to active skill rather than passive market exposure. It is the residual return after subtracting the risk-free rate and the beta-adjusted market premium — the return the asset should have earned based solely on its systematic risk. Below is Burcon NutraScience's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At 0.1757, Burcon NutraScience's Jensen Alpha indicates positive alpha — return above what market exposure alone would predict. Burcon NutraScience has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.1757 | |
| ER[a] | = | Expected return on investing in Burcon NutraScience |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Burcon NutraScience and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Relative to peers, Burcon NutraScience's Jensen Alpha is above the group average of -0.02. Peer readings range from -1.4125 (Else Nutrition Holdings) to 1.2 (Pesorama), reflecting tight clustering across the sector. Burcon NutraScience has generated more excess return relative to its market exposure than the peer group average.
Jensen Alpha Relative To Other Indicators
The chart below plots Jensen Alpha against Maximum Drawdown for Burcon NutraScience and its peers. Each point represents one equity — position along the horizontal axis shows Jensen Alpha while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Burcon NutraScience shows nearly
150.05 of Maximum Drawdown per unit of Jensen Alpha (
0.18 versus
26.36 ). This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Burcon NutraScience.
Methodology, Assumptions & Data Sources
Burcon NutraScience's Jensen Alpha currently stands at 0.1757. This Jensen Alpha reading for Burcon NutraScience results from applying the indicator's calculation rules to price and volume data over the selected window. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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