Correlation Between Argo Blockchain and Galaxy Digital
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and Galaxy Digital 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 Galaxy Digital 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 Galaxy Digital Holdings, you can compare the effects of market volatilities on Argo Blockchain and Galaxy Digital 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 Galaxy Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and Galaxy Digital.
Diversification Opportunities for Argo Blockchain and Galaxy Digital
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argo and Galaxy is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and Galaxy Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Digital Holdings 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 Galaxy Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Digital Holdings has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Galaxy Digital go up and down completely randomly.
Pair Corralation between Argo Blockchain and Galaxy Digital
Assuming the 90 days horizon Argo Blockchain PLC is expected to under-perform the Galaxy Digital. In addition to that, Argo Blockchain is 1.36 times more volatile than Galaxy Digital Holdings. It trades about -0.02 of its total potential returns per unit of risk. Galaxy Digital Holdings is currently generating about 0.2 per unit of volatility. If you would invest 1,292 in Galaxy Digital Holdings on August 26, 2024 and sell it today you would earn a total of 403.00 from holding Galaxy Digital Holdings or generate 31.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Blockchain PLC vs. Galaxy Digital Holdings
Performance |
| Timeline |
| Argo Blockchain PLC |
| Galaxy Digital Holdings |
Argo Blockchain and Galaxy Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Blockchain and Galaxy Digital
The main advantage of trading using opposite Argo Blockchain and Galaxy Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, Galaxy Digital 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 Galaxy Digital will offset losses from the drop in Galaxy Digital's long position.| Argo Blockchain vs. Cipher Mining | Argo Blockchain vs. Stronghold Digital Mining | Argo Blockchain vs. Iris Energy | Argo Blockchain vs. Terawulf |
| Galaxy Digital vs. DeFi Technologies | Galaxy Digital vs. Argo Blockchain PLC | Galaxy Digital vs. DigiMax Global | Galaxy Digital vs. BIG Blockchain Intelligence |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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