Correlation Between Argo Group and Jadestone Energy
Can any of the company-specific risk be diversified away by investing in both Argo Group and Jadestone Energy 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 Group and Jadestone Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group Limited and Jadestone Energy, you can compare the effects of market volatilities on Argo Group and Jadestone Energy 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 Group with a short position of Jadestone Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and Jadestone Energy.
Diversification Opportunities for Argo Group and Jadestone Energy
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Argo and Jadestone is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited and Jadestone Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadestone Energy and Argo Group 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 Group Limited are associated (or correlated) with Jadestone Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadestone Energy has no effect on the direction of Argo Group i.e., Argo Group and Jadestone Energy go up and down completely randomly.
Pair Corralation between Argo Group and Jadestone Energy
Assuming the 90 days trading horizon Argo Group Limited is expected to generate 1.66 times more return on investment than Jadestone Energy. However, Argo Group is 1.66 times more volatile than Jadestone Energy. It trades about 0.21 of its potential returns per unit of risk. Jadestone Energy is currently generating about 0.23 per unit of risk. If you would invest 400.00 in Argo Group Limited on November 3, 2024 and sell it today you would earn a total of 50.00 from holding Argo Group Limited or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Group Limited vs. Jadestone Energy
Performance |
| Timeline |
| Argo Group Limited |
| Jadestone Energy |
Argo Group and Jadestone Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and Jadestone Energy
The main advantage of trading using opposite Argo Group and Jadestone Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group position performs unexpectedly, Jadestone Energy 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 Jadestone Energy will offset losses from the drop in Jadestone Energy's long position.| Argo Group vs. Bankers Investment Trust | Argo Group vs. Xeros Technology Group | Argo Group vs. British American Tobacco | Argo Group vs. DXC Technology Co |
| Jadestone Energy vs. OneSavings Bank PLC | Jadestone Energy vs. Herald Investment Trust | Jadestone Energy vs. Geely Automobile Holdings | Jadestone Energy vs. Livermore Investments Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |