Correlation Between Cboe UK and Argo Group
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By analyzing existing cross correlation between Cboe UK Consumer and Argo Group Limited, you can compare the effects of market volatilities on Cboe UK and Argo Group 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 Cboe UK with a short position of Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Argo Group.
Diversification Opportunities for Cboe UK and Argo Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cboe and Argo is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Argo Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group Limited and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group Limited has no effect on the direction of Cboe UK i.e., Cboe UK and Argo Group go up and down completely randomly.
Pair Corralation between Cboe UK and Argo Group
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.24 times more return on investment than Argo Group. However, Cboe UK Consumer is 4.19 times less risky than Argo Group. It trades about 0.28 of its potential returns per unit of risk. Argo Group Limited is currently generating about -0.14 per unit of risk. If you would invest 2,770,118 in Cboe UK Consumer on September 2, 2024 and sell it today you would earn a total of 490,184 from holding Cboe UK Consumer or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Argo Group Limited
Performance |
| Timeline |
Cboe UK and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Argo Group Limited
Pair trading matchups for Argo Group
Pair Trading with Cboe UK and Argo Group
The main advantage of trading using opposite Cboe UK and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.| Cboe UK vs. Check Point Software | Cboe UK vs. Evolution Gaming Group | Cboe UK vs. Beeks Trading | Cboe UK vs. Hansa Investment |
| Argo Group vs. Allianz Technology Trust | Argo Group vs. Uber Technologies | Argo Group vs. UNIQA Insurance Group | Argo Group vs. Lendinvest PLC |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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