Correlation Between Stronghold Digital and Argo Blockchain
Can any of the company-specific risk be diversified away by investing in both Stronghold Digital 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 Stronghold Digital and Argo Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stronghold Digital Mining and Argo Blockchain PLC, you can compare the effects of market volatilities on Stronghold Digital 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 Stronghold Digital with a short position of Argo Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stronghold Digital and Argo Blockchain.
Diversification Opportunities for Stronghold Digital and Argo Blockchain
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stronghold and Argo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Stronghold Digital 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 Stronghold Digital 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 Stronghold Digital 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 Stronghold Digital i.e., Stronghold Digital and Argo Blockchain go up and down completely randomly.
Pair Corralation between Stronghold Digital and Argo Blockchain
Given the investment horizon of 90 days Stronghold Digital is expected to generate 1.51 times less return on investment than Argo Blockchain. But when comparing it to its historical volatility, Stronghold Digital Mining is 1.04 times less risky than Argo Blockchain. It trades about 0.04 of its potential returns per unit of risk. Argo Blockchain PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Argo Blockchain PLC on August 28, 2024 and sell it today you would earn a total of 47.00 from holding Argo Blockchain PLC or generate 71.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stronghold Digital Mining vs. Argo Blockchain PLC
Performance |
| Timeline |
| Stronghold Digital Mining |
| Argo Blockchain PLC |
Stronghold Digital and Argo Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stronghold Digital and Argo Blockchain
The main advantage of trading using opposite Stronghold Digital and Argo Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stronghold Digital 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.| Stronghold Digital vs. Terawulf | Stronghold Digital vs. Iris Energy | Stronghold Digital vs. Argo Blockchain PLC | Stronghold Digital vs. Bitfarms |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |