Correlation Between Argo Blockchain and Greenidge Generation
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and Greenidge Generation 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 Greenidge Generation 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 Greenidge Generation Holdings, you can compare the effects of market volatilities on Argo Blockchain and Greenidge Generation 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 Greenidge Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and Greenidge Generation.
Diversification Opportunities for Argo Blockchain and Greenidge Generation
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Argo and Greenidge is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and Greenidge Generation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenidge Generation 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 Greenidge Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenidge Generation has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Greenidge Generation go up and down completely randomly.
Pair Corralation between Argo Blockchain and Greenidge Generation
Given the investment horizon of 90 days Argo Blockchain PLC is expected to under-perform the Greenidge Generation. In addition to that, Argo Blockchain is 1.17 times more volatile than Greenidge Generation Holdings. It trades about -0.03 of its total potential returns per unit of risk. Greenidge Generation Holdings is currently generating about -0.02 per unit of volatility. If you would invest 339.00 in Greenidge Generation Holdings on November 3, 2024 and sell it today you would lose (193.00) from holding Greenidge Generation Holdings or give up 56.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Argo Blockchain PLC vs. Greenidge Generation Holdings
Performance |
| Timeline |
| Argo Blockchain PLC |
| Greenidge Generation |
Argo Blockchain and Greenidge Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Blockchain and Greenidge Generation
The main advantage of trading using opposite Argo Blockchain and Greenidge Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, Greenidge Generation 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 Greenidge Generation will offset losses from the drop in Greenidge Generation's long position.| Argo Blockchain vs. Terawulf | Argo Blockchain vs. Iris Energy | Argo Blockchain vs. Stronghold Digital Mining | Argo Blockchain vs. Bitfarms |
| Greenidge Generation vs. Cipher Mining | Greenidge Generation vs. Terawulf | Greenidge Generation vs. Iris Energy | Greenidge Generation vs. Argo Blockchain PLC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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