Correlation Between Argo Blockchain and VHAI
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and VHAI 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 VHAI 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 VHAI, you can compare the effects of market volatilities on Argo Blockchain and VHAI 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 VHAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and VHAI.
Diversification Opportunities for Argo Blockchain and VHAI
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argo and VHAI is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain plc and VHAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VHAI 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 VHAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VHAI has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and VHAI go up and down completely randomly.
Pair Corralation between Argo Blockchain and VHAI
Assuming the 90 days horizon Argo Blockchain plc is expected to generate 0.63 times more return on investment than VHAI. However, Argo Blockchain plc is 1.59 times less risky than VHAI. It trades about 0.1 of its potential returns per unit of risk. VHAI is currently generating about -0.17 per unit of risk. If you would invest 55.00 in Argo Blockchain plc on September 3, 2024 and sell it today you would earn a total of 820.00 from holding Argo Blockchain plc or generate 1490.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 39.19% |
| Values | Daily Returns |
Argo Blockchain plc vs. VHAI
Performance |
| Timeline |
| Argo Blockchain plc |
| VHAI |
Argo Blockchain and VHAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Blockchain and VHAI
The main advantage of trading using opposite Argo Blockchain and VHAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, VHAI 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 VHAI will offset losses from the drop in VHAI's 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 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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