Correlation Between Benson Hill, and Bioceres Crop

Can any of the company-specific risk be diversified away by investing in both Benson Hill, and Bioceres Crop 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 Benson Hill, and Bioceres Crop into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benson Hill, Common and Bioceres Crop Solutions, you can compare the effects of market volatilities on Benson Hill, and Bioceres Crop 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 Benson Hill, with a short position of Bioceres Crop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benson Hill, and Bioceres Crop.

Diversification Opportunities for Benson Hill, and Bioceres Crop

0.83

Correlation Coefficient

Benson Hill,  Bioceres Crop

Very poor diversification

The 3 months correlation between Benson and Bioceres is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Benson Hill, Common and Bioceres Crop Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioceres Crop Solutions and Benson Hill, 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 Benson Hill, Common are associated (or correlated) with Bioceres Crop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioceres Crop Solutions has no effect on the direction of Benson Hill, i.e., Benson Hill, and Bioceres Crop go up and down completely randomly.

Pair Corralation between Benson Hill, and Bioceres Crop

Given the investment horizon of 90 days Benson Hill, Common is expected to under-perform the Bioceres Crop. In addition to that, Benson Hill, is 3.82 times more volatile than Bioceres Crop Solutions. It trades about -0.13 of its total potential returns per unit of risk. Bioceres Crop Solutions is currently generating about -0.04 per unit of volatility. If you would invest  604.00  in Bioceres Crop Solutions on December 29, 2024 and sell it today you would lose (120.00) from holding Bioceres Crop Solutions or give up 19.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Benson Hill, Common  vs.  Bioceres Crop Solutions

Benson Hill, Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Benson Hill, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Bioceres Crop Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bioceres Crop Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Benson Hill, and Bioceres Crop

The main advantage of trading using opposite Benson Hill, and Bioceres Crop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benson Hill, position performs unexpectedly, Bioceres Crop 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 Bioceres Crop will offset losses from the drop in Bioceres Crop's long position.

The idea behind Benson Hill, Common and Bioceres Crop Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.