Correlation Between Ivanhoe Electric and Bioceres Crop

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

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

Diversification Opportunities for Ivanhoe Electric and Bioceres Crop

-0.67

Correlation Coefficient

Ivanhoe Electric  Bioceres Crop

Excellent diversification

The 3 months correlation between Ivanhoe and Bioceres is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Electric 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 Ivanhoe Electric 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 Ivanhoe Electric 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 Ivanhoe Electric i.e., Ivanhoe Electric and Bioceres Crop go up and down completely randomly.

Pair Corralation between Ivanhoe Electric and Bioceres Crop

Allowing for the 90-day total investment horizon Ivanhoe Electric is expected to generate 1.06 times more return on investment than Bioceres Crop. However, Ivanhoe Electric is 1.06 times more volatile than Bioceres Crop Solutions. It trades about 0.19 of its potential returns per unit of risk. Bioceres Crop Solutions is currently generating about -0.06 per unit of risk. If you would invest  616.00  in Ivanhoe Electric on May 6, 2025 and sell it today you would earn a total of  343.00  from holding Ivanhoe Electric or generate 55.68% return on investment over 90 days.

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

Ivanhoe Electric  vs.  Bioceres Crop Solutions

Ivanhoe Electric

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ivanhoe Electric are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Ivanhoe Electric exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 weak 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.

Pair Trading with Ivanhoe Electric and Bioceres Crop

The main advantage of trading using opposite Ivanhoe Electric and Bioceres Crop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Electric 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 Ivanhoe Electric 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.