Correlation Between Bioceres Crop and AAC Clyde

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

Diversification Opportunities for Bioceres Crop and AAC Clyde

-0.08

Correlation Coefficient

Bioceres Crop  AAC Clyde

Good diversification

The 3 months correlation between Bioceres and AAC is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bioceres Crop Solutions and AAC Clyde Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Clyde Space 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 AAC Clyde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Clyde Space has no effect on the direction of Bioceres Crop i.e., Bioceres Crop and AAC Clyde go up and down completely randomly.

Pair Corralation between Bioceres Crop and AAC Clyde

Given the investment horizon of 90 days Bioceres Crop Solutions is expected to under-perform the AAC Clyde. But the stock apears to be less risky and, when comparing its historical volatility, Bioceres Crop Solutions is 1.44 times less risky than AAC Clyde. The stock trades about -0.06 of its potential returns per unit of risk. The AAC Clyde Space is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  8,760  in AAC Clyde Space on May 4, 2025 and sell it today you would earn a total of  1,620  from holding AAC Clyde Space or generate 18.49% return on investment over 90 days.

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

Bioceres Crop Solutions  vs.  AAC Clyde Space

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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

AAC Clyde Space

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AAC Clyde Space are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, AAC Clyde unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bioceres Crop and AAC Clyde

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

The idea behind Bioceres Crop Solutions and AAC Clyde Space 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.