Correlation Between Argo Blockchain and SMA Solar
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and SMA Solar 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 SMA Solar 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 SMA Solar Technology, you can compare the effects of market volatilities on Argo Blockchain and SMA Solar 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 SMA Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and SMA Solar.
Diversification Opportunities for Argo Blockchain and SMA Solar
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argo and SMA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and SMA Solar Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMA Solar Technology 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 SMA Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMA Solar Technology has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and SMA Solar go up and down completely randomly.
Pair Corralation between Argo Blockchain and SMA Solar
Assuming the 90 days trading horizon Argo Blockchain PLC is expected to generate 5.19 times more return on investment than SMA Solar. However, Argo Blockchain is 5.19 times more volatile than SMA Solar Technology. It trades about 0.11 of its potential returns per unit of risk. SMA Solar Technology is currently generating about 0.16 per unit of risk. If you would invest 288.00 in Argo Blockchain PLC on April 21, 2025 and sell it today you would earn a total of 62.00 from holding Argo Blockchain PLC or generate 21.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 90.48% |
Values | Daily Returns |
Argo Blockchain PLC vs. SMA Solar Technology
Performance |
Timeline |
Argo Blockchain PLC |
SMA Solar Technology |
Argo Blockchain and SMA Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Argo Blockchain and SMA Solar
The main advantage of trading using opposite Argo Blockchain and SMA Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, SMA Solar 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 SMA Solar will offset losses from the drop in SMA Solar's long position.Argo Blockchain vs. Austevoll Seafood ASA | Argo Blockchain vs. Tyson Foods Cl | Argo Blockchain vs. New Residential Investment | Argo Blockchain vs. The Mercantile Investment |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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