Correlation Between Cipher Mining and Argo Blockchain
Can any of the company-specific risk be diversified away by investing in both Cipher Mining 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 Cipher Mining and Argo Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cipher Mining and Argo Blockchain PLC, you can compare the effects of market volatilities on Cipher Mining 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 Cipher Mining with a short position of Argo Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipher Mining and Argo Blockchain.
Diversification Opportunities for Cipher Mining and Argo Blockchain
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cipher and Argo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cipher Mining 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 Cipher Mining 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 Cipher Mining 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 Cipher Mining i.e., Cipher Mining and Argo Blockchain go up and down completely randomly.
Pair Corralation between Cipher Mining and Argo Blockchain
Given the investment horizon of 90 days Cipher Mining is expected to generate 0.89 times more return on investment than Argo Blockchain. However, Cipher Mining is 1.12 times less risky than Argo Blockchain. It trades about 0.09 of its potential returns per unit of risk. Argo Blockchain PLC is currently generating about 0.06 per unit of risk. If you would invest 78.00 in Cipher Mining on August 28, 2024 and sell it today you would earn a total of 567.00 from holding Cipher Mining or generate 726.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cipher Mining vs. Argo Blockchain PLC
Performance |
| Timeline |
| Cipher Mining |
| Argo Blockchain PLC |
Cipher Mining and Argo Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cipher Mining and Argo Blockchain
The main advantage of trading using opposite Cipher Mining and Argo Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipher Mining 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.| Cipher Mining vs. PowerUp Acquisition Corp | Cipher Mining vs. Aurora Innovation | Cipher Mining vs. HUMANA INC | Cipher Mining vs. Aquagold International |
| Argo Blockchain vs. PowerUp Acquisition Corp | Argo Blockchain vs. Aurora Innovation | Argo Blockchain vs. HUMANA INC | Argo Blockchain vs. Aquagold International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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