Correlation Between The9 and Bioceres Crop
Can any of the company-specific risk be diversified away by investing in both The9 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 The9 and Bioceres Crop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The9 Ltd ADR and Bioceres Crop Solutions, you can compare the effects of market volatilities on The9 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 The9 with a short position of Bioceres Crop. Check out your portfolio center. Please also check ongoing floating volatility patterns of The9 and Bioceres Crop.
Diversification Opportunities for The9 and Bioceres Crop
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between The9 and Bioceres is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding The9 Ltd ADR 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 The9 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 The9 Ltd ADR 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 The9 i.e., The9 and Bioceres Crop go up and down completely randomly.
Pair Corralation between The9 and Bioceres Crop
Given the investment horizon of 90 days The9 Ltd ADR is expected to generate 1.24 times more return on investment than Bioceres Crop. However, The9 is 1.24 times more volatile than Bioceres Crop Solutions. It trades about 0.02 of its potential returns per unit of risk. Bioceres Crop Solutions is currently generating about -0.2 per unit of risk. If you would invest 913.00 in The9 Ltd ADR on June 2, 2025 and sell it today you would earn a total of 2.00 from holding The9 Ltd ADR or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The9 Ltd ADR vs. Bioceres Crop Solutions
Performance |
| Timeline |
| The9 Ltd ADR |
| Bioceres Crop Solutions |
The9 and Bioceres Crop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The9 and Bioceres Crop
The main advantage of trading using opposite The9 and Bioceres Crop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The9 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.| The9 vs. Blue Hat Interactive | The9 vs. Snail, Class A | The9 vs. Sonida Senior Living | The9 vs. Nine Energy Service |
| Bioceres Crop vs. American Vanguard | Bioceres Crop vs. Intrepid Potash | Bioceres Crop vs. FMC Corporation | Bioceres Crop vs. E I du |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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