Correlation Between Argo Blockchain and First Majestic
Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and First Majestic 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 First Majestic 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 First Majestic Silver, you can compare the effects of market volatilities on Argo Blockchain and First Majestic 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 First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and First Majestic.
Diversification Opportunities for Argo Blockchain and First Majestic
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argo and First is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver 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 First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and First Majestic go up and down completely randomly.
Pair Corralation between Argo Blockchain and First Majestic
Assuming the 90 days trading horizon Argo Blockchain PLC is expected to generate 5.84 times more return on investment than First Majestic. However, Argo Blockchain is 5.84 times more volatile than First Majestic Silver. It trades about 0.09 of its potential returns per unit of risk. First Majestic Silver is currently generating about 0.17 per unit of risk. If you would invest 300.00 in Argo Blockchain PLC on April 25, 2025 and sell it today you would earn a total of 5.00 from holding Argo Blockchain PLC or generate 1.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.32% |
Values | Daily Returns |
Argo Blockchain PLC vs. First Majestic Silver
Performance |
Timeline |
Argo Blockchain PLC |
First Majestic Silver |
Argo Blockchain and First Majestic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Argo Blockchain and First Majestic
The main advantage of trading using opposite Argo Blockchain and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Blockchain position performs unexpectedly, First Majestic 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 First Majestic will offset losses from the drop in First Majestic's long position.Argo Blockchain vs. Infrastrutture Wireless Italiane | Argo Blockchain vs. Naked Wines plc | Argo Blockchain vs. Aeorema Communications Plc | Argo Blockchain vs. UNIQA Insurance Group |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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