Correlation Between Argo Blockchain and Datagroup

Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and Datagroup 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 Datagroup 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 Datagroup SE, you can compare the effects of market volatilities on Argo Blockchain and Datagroup 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 Datagroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and Datagroup.

Diversification Opportunities for Argo Blockchain and Datagroup

-0.52

Correlation Coefficient

Argo Blockchain  Datagroup

Excellent diversification

The 3 months correlation between Argo and Datagroup is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and Datagroup SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagroup SE 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 Datagroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagroup SE has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Datagroup go up and down completely randomly.

Pair Corralation between Argo Blockchain and Datagroup

Assuming the 90 days trading horizon Argo Blockchain PLC is expected to generate 21.2 times more return on investment than Datagroup. However, Argo Blockchain is 21.2 times more volatile than Datagroup SE. It trades about 0.11 of its potential returns per unit of risk. Datagroup SE is currently generating about 0.19 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	87.69%
Values	Daily Returns

Argo Blockchain PLC  vs.  Datagroup SE

Argo Blockchain PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Blockchain PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Argo Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

Datagroup SE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Datagroup SE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Datagroup may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Argo Blockchain and Datagroup

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

The idea behind Argo Blockchain PLC and Datagroup SE 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.