Correlation Between Argo Blockchain and IMining Blockchain

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

By analyzing existing cross correlation between Argo Blockchain PLC and iMining Blockchain and, you can compare the effects of market volatilities on Argo Blockchain and IMining Blockchain 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 Argo Blockchain with a short position of IMining Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and IMining Blockchain.

Diversification Opportunities for Argo Blockchain and IMining Blockchain

0.0

Correlation Coefficient

Argo Blockchain  IMining Blockchain

Pay attention - limited upside

The 3 months correlation between Argo and IMining is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and iMining Blockchain and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iMining Blockchain and and Argo Blockchain 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 Argo Blockchain PLC are associated (or correlated) with IMining Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iMining Blockchain and has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and IMining Blockchain go up and down completely randomly.

Pair Corralation between Argo Blockchain and IMining Blockchain

If you would invest  12.00  in Argo Blockchain PLC on September 3, 2024 and sell it today you would lose (1.00) from holding Argo Blockchain PLC or give up 8.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Argo Blockchain PLC  vs.  iMining Blockchain and

Argo Blockchain PLC

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Blockchain PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward-looking signals, Argo Blockchain reported solid returns over the last few months and may actually be approaching a breakup point.

iMining Blockchain and

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iMining Blockchain and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, IMining Blockchain is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Argo Blockchain and IMining Blockchain

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

The idea behind Argo Blockchain PLC and iMining Blockchain and 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.