Correlation Between Argo Blockchain and Cipher Mining
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and Cipher Mining 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 Cipher Mining 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 Cipher Mining, you can compare the effects of market volatilities on Argo Blockchain and Cipher Mining 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 Cipher Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and Cipher Mining.
Diversification Opportunities for Argo Blockchain and Cipher Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Argo and Cipher is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and Cipher Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher Mining 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 Cipher Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Mining has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Cipher Mining go up and down completely randomly.
Pair Corralation between Argo Blockchain and Cipher Mining
Given the investment horizon of 90 days Argo Blockchain PLC is expected to under-perform the Cipher Mining. In addition to that, Argo Blockchain is 1.03 times more volatile than Cipher Mining. It trades about 0.0 of its total potential returns per unit of risk. Cipher Mining is currently generating about 0.08 per unit of volatility. If you would invest 304.00 in Cipher Mining on August 28, 2024 and sell it today you would earn a total of 341.00 from holding Cipher Mining or generate 112.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Blockchain PLC vs. Cipher Mining
Performance |
| Timeline |
| Argo Blockchain PLC |
| Cipher Mining |
Argo Blockchain and Cipher Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Blockchain and Cipher Mining
The main advantage of trading using opposite Argo Blockchain and Cipher Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, Cipher Mining 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 Cipher Mining will offset losses from the drop in Cipher Mining's long position.| Argo Blockchain vs. Terawulf | Argo Blockchain vs. Iris Energy | Argo Blockchain vs. Stronghold Digital Mining | Argo Blockchain vs. Bitfarms |
| Cipher Mining vs. Iris Energy | Cipher Mining vs. CleanSpark | Cipher Mining vs. Stronghold Digital Mining | Cipher Mining vs. Bitfarms |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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