Correlation Between Bioceres Crop and Igene Biotechnology

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

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

Diversification Opportunities for Bioceres Crop and Igene Biotechnology

0.0

Correlation Coefficient

Bioceres Crop  Igene Biotechnology

Pay attention - limited upside

The 3 months correlation between Bioceres and Igene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bioceres Crop Solutions and Igene Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igene Biotechnology and Bioceres Crop 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 Bioceres Crop Solutions are associated (or correlated) with Igene Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igene Biotechnology has no effect on the direction of Bioceres Crop i.e., Bioceres Crop and Igene Biotechnology go up and down completely randomly.

Pair Corralation between Bioceres Crop and Igene Biotechnology

If you would invest  608.00  in Bioceres Crop Solutions on September 17, 2024 and sell it today you would earn a total of  82.00  from holding Bioceres Crop Solutions or generate 13.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Bioceres Crop Solutions  vs.  Igene Biotechnology

Bioceres Crop Solutions

Risk-Adjusted Performance

0 of 100

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 January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Igene Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Igene Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Igene Biotechnology is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bioceres Crop and Igene Biotechnology

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

The idea behind Bioceres Crop Solutions and Igene Biotechnology 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.