Correlation Between Argo Blockchain and Ally Financial

Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and Ally Financial 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 Argo Blockchain and Ally Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Argo Blockchain PLC and Ally Financial, you can compare the effects of market volatilities on Argo Blockchain and Ally Financial 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 Argo Blockchain with a short position of Ally Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and Ally Financial.

Diversification Opportunities for Argo Blockchain and Ally Financial

0.0

Correlation Coefficient

Argo Blockchain  Ally Financial

Pay attention - limited upside

The 3 months correlation between Argo and Ally is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and Ally Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Financial and Argo Blockchain 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 Argo Blockchain PLC are associated (or correlated) with Ally Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Financial has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Ally Financial go up and down completely randomly.

Pair Corralation between Argo Blockchain and Ally Financial

If you would invest  3,287  in Ally Financial on April 24, 2025 and sell it today you would earn a total of  615.00  from holding Ally Financial or generate 18.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Argo Blockchain PLC  vs.  Ally Financial

Argo Blockchain PLC

Risk-Adjusted Performance

OK

Over the last 90 days Argo Blockchain PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Argo Blockchain is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Ally Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ally Financial are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Ally Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Argo Blockchain and Ally Financial

The main advantage of trading using opposite Argo Blockchain and Ally Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, Ally Financial 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 Ally Financial will offset losses from the drop in Ally Financial's long position.

The idea behind Argo Blockchain PLC and Ally Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.