Correlation Between Bioceres Crop and Mercer International

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

Diversification Opportunities for Bioceres Crop and Mercer International

0.5

Correlation Coefficient

Bioceres Crop  Mercer International

Very weak diversification

The 3 months correlation between Bioceres and Mercer is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bioceres Crop Solutions and Mercer International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercer International 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 Mercer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercer International has no effect on the direction of Bioceres Crop i.e., Bioceres Crop and Mercer International go up and down completely randomly.

Pair Corralation between Bioceres Crop and Mercer International

Given the investment horizon of 90 days Bioceres Crop Solutions is expected to generate 2.14 times more return on investment than Mercer International. However, Bioceres Crop is 2.14 times more volatile than Mercer International. It trades about -0.1 of its potential returns per unit of risk. Mercer International is currently generating about -0.27 per unit of risk. If you would invest  300.00  in Bioceres Crop Solutions on August 17, 2025 and sell it today you would lose (132.00) from holding Bioceres Crop Solutions or give up 44.0% of portfolio value over 90 days.

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

Bioceres Crop Solutions  vs.  Mercer International

Bioceres Crop Solutions

Risk-Adjusted Performance

Weakest

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

Mercer International

Risk-Adjusted Performance

Weakest

Over the last 90 days Mercer International 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 rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Bioceres Crop and Mercer International

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

The idea behind Bioceres Crop Solutions and Mercer International 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.

Check out your portfolio center.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.