Correlation Between Bioceres Crop and Benson Hill,

Can any of the company-specific risk be diversified away by investing in both Bioceres Crop and Benson Hill, 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 Benson Hill, 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 Benson Hill, Common, you can compare the effects of market volatilities on Bioceres Crop and Benson Hill, 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 Benson Hill,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioceres Crop and Benson Hill,.

Diversification Opportunities for Bioceres Crop and Benson Hill,

0.12

Correlation Coefficient

Bioceres Crop  Benson Hill,

Average diversification

The 3 months correlation between Bioceres and Benson is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bioceres Crop Solutions and Benson Hill, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benson Hill, Common 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 Benson Hill,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benson Hill, Common has no effect on the direction of Bioceres Crop i.e., Bioceres Crop and Benson Hill, go up and down completely randomly.

Pair Corralation between Bioceres Crop and Benson Hill,

Given the investment horizon of 90 days Bioceres Crop Solutions is expected to generate 0.78 times more return on investment than Benson Hill,. However, Bioceres Crop Solutions is 1.28 times less risky than Benson Hill,. It trades about -0.2 of its potential returns per unit of risk. Benson Hill, Common is currently generating about -0.16 per unit of risk. If you would invest  1,059  in Bioceres Crop Solutions on September 3, 2024 and sell it today you would lose (347.00) from holding Bioceres Crop Solutions or give up 32.77% of portfolio value over 90 days.

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

Bioceres Crop Solutions  vs.  Benson Hill, Common

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 fragile 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.

Benson Hill, Common

Risk-Adjusted Performance

0 of 100

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 January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Bioceres Crop and Benson Hill,

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

The idea behind Bioceres Crop Solutions and Benson Hill, Common 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.