Correlation Between XTRA Bitcoin and Argo Blockchain
Can any of the company-specific risk be diversified away by investing in both XTRA Bitcoin and Argo Blockchain 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 XTRA Bitcoin and Argo Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTRA Bitcoin and Argo Blockchain PLC, you can compare the effects of market volatilities on XTRA Bitcoin and Argo Blockchain 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 XTRA Bitcoin with a short position of Argo Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTRA Bitcoin and Argo Blockchain.
Diversification Opportunities for XTRA Bitcoin and Argo Blockchain
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XTRA and Argo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding XTRA Bitcoin and Argo Blockchain PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Blockchain PLC and XTRA Bitcoin 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 XTRA Bitcoin are associated (or correlated) with Argo Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Blockchain PLC has no effect on the direction of XTRA Bitcoin i.e., XTRA Bitcoin and Argo Blockchain go up and down completely randomly.
Pair Corralation between XTRA Bitcoin and Argo Blockchain
Given the investment horizon of 90 days XTRA Bitcoin is expected to generate 2.35 times more return on investment than Argo Blockchain. However, XTRA Bitcoin is 2.35 times more volatile than Argo Blockchain PLC. It trades about -0.05 of its potential returns per unit of risk. Argo Blockchain PLC is currently generating about -0.2 per unit of risk. If you would invest 0.11 in XTRA Bitcoin on December 3, 2024 and sell it today you would lose (0.02) from holding XTRA Bitcoin or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
XTRA Bitcoin vs. Argo Blockchain PLC
Performance |
| Timeline |
| XTRA Bitcoin |
| Argo Blockchain PLC |
XTRA Bitcoin and Argo Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTRA Bitcoin and Argo Blockchain
The main advantage of trading using opposite XTRA Bitcoin and Argo Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTRA Bitcoin position performs unexpectedly, Argo Blockchain 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 Blockchain will offset losses from the drop in Argo Blockchain's long position.| XTRA Bitcoin vs. Coin Citadel | XTRA Bitcoin vs. ICOA Inc | XTRA Bitcoin vs. NSAV Holding | XTRA Bitcoin vs. Lion Group Holding |
| Argo Blockchain vs. Terawulf | Argo Blockchain vs. Iris Energy | Argo Blockchain vs. Stronghold Digital Mining | Argo Blockchain vs. Bitfarms |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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