Argo Blockchain Plc Stock Volatility
| ARBK Stock | USD 1.17 0.05 4.46% |
Argo Blockchain PLC secures Sharpe Ratio (or Efficiency) of -0.0273, which signifies that the company had a -0.0273% return per unit of standard deviation over the last 3 months. Argo Blockchain PLC exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Argo Blockchain's risk adjusted performance of 0.01, and Mean Deviation of 5.09 to double-check the risk estimate we provide. Key indicators related to Argo Blockchain's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Argo Blockchain Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Argo daily returns, and it is calculated using variance and standard deviation. We also use Argo's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Argo Blockchain volatility.
Argo |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Argo Blockchain at lower prices. For example, an investor can purchase Argo stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Argo Blockchain Market Sensitivity And Downside Risk
Argo Blockchain's beta coefficient measures the volatility of Argo stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Argo stock's returns against your selected market. In other words, Argo Blockchain's beta of -0.16 provides an investor with an approximation of how much risk Argo Blockchain stock can potentially add to one of your existing portfolios. Argo Blockchain PLC is displaying above-average volatility over the selected time horizon. Argo Blockchain PLC is a potential penny stock. Although Argo Blockchain may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Argo Blockchain PLC. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Argo instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Argo Blockchain PLC Demand TrendCheck current 90 days Argo Blockchain correlation with market (Dow Jones Industrial)Argo Beta |
Argo standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 6.19 |
It is essential to understand the difference between upside risk (as represented by Argo Blockchain's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Argo Blockchain's daily returns or price. Since the actual investment returns on holding a position in argo stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Argo Blockchain.
Argo Blockchain PLC Stock Volatility Analysis
Volatility refers to the frequency at which Argo Blockchain stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Argo Blockchain's price changes. Investors will then calculate the volatility of Argo Blockchain's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Argo Blockchain's volatility:
Historical Volatility
This type of stock volatility measures Argo Blockchain's fluctuations based on previous trends. It's commonly used to predict Argo Blockchain's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Argo Blockchain's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Argo Blockchain's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Argo Blockchain PLC Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Argo Blockchain Projected Return Density Against Market
Given the investment horizon of 90 days Argo Blockchain PLC has a beta of -0.1606 . This suggests as returns on the benchmark increase, returns on holding Argo Blockchain are expected to decrease at a much lower rate. During a bear market, however, Argo Blockchain PLC is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Argo Blockchain or Capital Markets sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Argo Blockchain's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Argo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Argo Blockchain PLC has an alpha of 0.0162, implying that it can generate a 0.0162 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Argo Blockchain Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Argo Blockchain Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Argo Blockchain is -3663.44. The daily returns are distributed with a variance of 38.29 and standard deviation of 6.19. The mean deviation of Argo Blockchain PLC is currently at 4.88. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.02 | |
β | Beta against Dow Jones | -0.16 | |
σ | Overall volatility | 6.19 | |
Ir | Information ratio | -0.02 |
Argo Blockchain Stock Return Volatility
Argo Blockchain historical daily return volatility represents how much of Argo Blockchain stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 6.1879% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Argo Blockchain Volatility
Volatility is a rate at which the price of Argo Blockchain or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Argo Blockchain may increase or decrease. In other words, similar to Argo's beta indicator, it measures the risk of Argo Blockchain and helps estimate the fluctuations that may happen in a short period of time. So if prices of Argo Blockchain fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 2.1 M | 2.2 M | |
| Market Cap | 14.8 M | 9.5 M |
Argo Blockchain's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Argo Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Argo Blockchain's price varies over time.
3 ways to utilize Argo Blockchain's volatility to invest better
Higher Argo Blockchain's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Argo Blockchain PLC stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Argo Blockchain PLC stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Argo Blockchain PLC investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Argo Blockchain's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Argo Blockchain's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Argo Blockchain Investment Opportunity
Argo Blockchain PLC has a volatility of 6.19 and is 8.04 times more volatile than Dow Jones Industrial. 55 percent of all equities and portfolios are less risky than Argo Blockchain. You can use Argo Blockchain PLC to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Argo Blockchain to be traded at $1.4625 in 90 days.Good diversification
The correlation between Argo Blockchain PLC and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and DJI in the same portfolio, assuming nothing else is changed.
Argo Blockchain Additional Risk Indicators
The analysis of Argo Blockchain's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Argo Blockchain's investment and either accepting that risk or mitigating it. Along with some common measures of Argo Blockchain stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.01 | |||
| Market Risk Adjusted Performance | 0.0086 | |||
| Mean Deviation | 5.09 | |||
| Semi Deviation | 5.92 | |||
| Downside Deviation | 6.2 | |||
| Coefficient Of Variation | 62780.73 | |||
| Standard Deviation | 6.42 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Argo Blockchain Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Argo Blockchain as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Argo Blockchain's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Argo Blockchain's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Argo Blockchain PLC.
When determining whether Argo Blockchain PLC is a strong investment it is important to analyze Argo Blockchain's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Argo Blockchain's future performance. For an informed investment choice regarding Argo Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Argo Blockchain PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Argo Blockchain. If investors know Argo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Argo Blockchain listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.94) | Earnings Share (0.90) | Revenue Per Share 1.01 | Quarterly Revenue Growth (0.03) | Return On Assets (0.16) |
The market value of Argo Blockchain PLC is measured differently than its book value, which is the value of Argo that is recorded on the company's balance sheet. Investors also form their own opinion of Argo Blockchain's value that differs from its market value or its book value, called intrinsic value, which is Argo Blockchain's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Argo Blockchain's market value can be influenced by many factors that don't directly affect Argo Blockchain's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Argo Blockchain's value and its price as these two are different measures arrived at by different means. Investors typically determine if Argo Blockchain is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Argo Blockchain's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.