Correlation Between Argo Blockchain and JLEN Environmental

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

Diversification Opportunities for Argo Blockchain and JLEN Environmental

-0.2

Correlation Coefficient

Argo Blockchain  JLEN Environmental

Good diversification

The 3 months correlation between Argo and JLEN is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and JLEN Environmental go up and down completely randomly.

Pair Corralation between Argo Blockchain and JLEN Environmental

Assuming the 90 days trading horizon Argo Blockchain is expected to generate 15.94 times less return on investment than JLEN Environmental. But when comparing it to its historical volatility, Argo Blockchain PLC is 8.75 times less risky than JLEN Environmental. It trades about 0.09 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  7,167  in JLEN Environmental Assets on April 23, 2025 and sell it today you would earn a total of  1,073  from holding JLEN Environmental Assets or generate 14.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.94%
Values	Daily Returns

Argo Blockchain PLC  vs.  JLEN Environmental Assets

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 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Argo Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

JLEN Environmental Assets

Risk-Adjusted Performance

Good

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

Pair Trading with Argo Blockchain and JLEN Environmental

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

The idea behind Argo Blockchain PLC and JLEN Environmental Assets 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.