Correlation Between Argo Blockchain and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and Atlanticus Holdings 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 Atlanticus Holdings 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 Atlanticus Holdings, you can compare the effects of market volatilities on Argo Blockchain and Atlanticus Holdings 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 Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and Atlanticus Holdings.
Diversification Opportunities for Argo Blockchain and Atlanticus Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Argo and Atlanticus is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain plc and Atlanticus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus 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 Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Argo Blockchain and Atlanticus Holdings
Assuming the 90 days horizon Argo Blockchain plc is expected to under-perform the Atlanticus Holdings. In addition to that, Argo Blockchain is 3.83 times more volatile than Atlanticus Holdings. It trades about -0.22 of its total potential returns per unit of risk. Atlanticus Holdings is currently generating about 0.16 per unit of volatility. If you would invest 2,355 in Atlanticus Holdings on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Atlanticus Holdings or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Blockchain plc vs. Atlanticus Holdings
Performance |
| Timeline |
| Argo Blockchain plc |
| Atlanticus Holdings |
Argo Blockchain and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Blockchain and Atlanticus Holdings
The main advantage of trading using opposite Argo Blockchain and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, Atlanticus Holdings 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| Argo Blockchain vs. Greenidge Generation Holdings | Argo Blockchain vs. Harrow Health 8625 | Argo Blockchain vs. Fossil Group 7 | Argo Blockchain vs. Atlanticus Holdings |
| Atlanticus Holdings vs. B Riley Financial | Atlanticus Holdings vs. Atlanticus Holdings Corp | Atlanticus Holdings vs. Atlas Corp | Atlanticus Holdings vs. Harrow Health 8625 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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