Correlation Between Argo Blockchain and HIVE Blockchain
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and HIVE 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 HIVE 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 HIVE Blockchain Technologies, you can compare the effects of market volatilities on Argo Blockchain and HIVE 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 HIVE Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and HIVE Blockchain.
Diversification Opportunities for Argo Blockchain and HIVE Blockchain
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Argo and HIVE is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and HIVE Blockchain Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIVE Blockchain Tech 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 HIVE Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIVE Blockchain Tech has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and HIVE Blockchain go up and down completely randomly.
Pair Corralation between Argo Blockchain and HIVE Blockchain
Given the investment horizon of 90 days Argo Blockchain PLC is expected to generate 1.53 times more return on investment than HIVE Blockchain. However, Argo Blockchain is 1.53 times more volatile than HIVE Blockchain Technologies. It trades about 0.06 of its potential returns per unit of risk. HIVE Blockchain Technologies is currently generating about 0.05 per unit of risk. If you would invest 66.00 in Argo Blockchain PLC on August 28, 2024 and sell it today you would earn a total of 47.00 from holding Argo Blockchain PLC or generate 71.21% 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. HIVE Blockchain Technologies
Performance |
| Timeline |
| Argo Blockchain PLC |
| HIVE Blockchain Tech |
Argo Blockchain and HIVE Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Blockchain and HIVE Blockchain
The main advantage of trading using opposite Argo Blockchain and HIVE Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, HIVE 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 HIVE Blockchain will offset losses from the drop in HIVE Blockchain's long position.| Argo Blockchain vs. PowerUp Acquisition Corp | Argo Blockchain vs. Aurora Innovation | Argo Blockchain vs. HUMANA INC | Argo Blockchain vs. Aquagold International |
| HIVE Blockchain vs. PowerUp Acquisition Corp | HIVE Blockchain vs. Aurora Innovation | HIVE Blockchain vs. HUMANA INC | HIVE Blockchain vs. Aquagold International |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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