Correlation Between CGA Old and Bioceres Crop

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

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

Diversification Opportunities for CGA Old and Bioceres Crop

0.0

Correlation Coefficient

CGA Old  Bioceres Crop

Pay attention - limited upside

The 3 months correlation between CGA and Bioceres is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CGA Old 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 CGA Old 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 CGA Old 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 CGA Old i.e., CGA Old and Bioceres Crop go up and down completely randomly.

Pair Corralation between CGA Old and Bioceres Crop

If you would invest (100.00) in CGA Old on December 28, 2024 and sell it today you would earn a total of  100.00  from holding CGA Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CGA Old  vs.  Bioceres Crop Solutions

CGA Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days CGA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, CGA Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the 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 CGA Old and Bioceres Crop

The main advantage of trading using opposite CGA Old and Bioceres Crop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGA Old 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 CGA Old 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.