Correlation Between Argo Investments and Cleanspace Holdings
Can any of the company-specific risk be diversified away by investing in both Argo Investments and Cleanspace Holdings 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 Investments and Cleanspace Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Investments and Cleanspace Holdings, you can compare the effects of market volatilities on Argo Investments and Cleanspace Holdings 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 Investments with a short position of Cleanspace Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Investments and Cleanspace Holdings.
Diversification Opportunities for Argo Investments and Cleanspace Holdings
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Argo and Cleanspace is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Argo Investments and Cleanspace Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanspace Holdings and Argo Investments 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 Investments are associated (or correlated) with Cleanspace Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanspace Holdings has no effect on the direction of Argo Investments i.e., Argo Investments and Cleanspace Holdings go up and down completely randomly.
Pair Corralation between Argo Investments and Cleanspace Holdings
Assuming the 90 days trading horizon Argo Investments is expected to generate 9.42 times less return on investment than Cleanspace Holdings. But when comparing it to its historical volatility, Argo Investments is 8.83 times less risky than Cleanspace Holdings. It trades about 0.2 of its potential returns per unit of risk. Cleanspace Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Cleanspace Holdings on April 25, 2025 and sell it today you would earn a total of 27.00 from holding Cleanspace Holdings or generate 71.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Argo Investments vs. Cleanspace Holdings
Performance |
Timeline |
Argo Investments |
Cleanspace Holdings |
Argo Investments and Cleanspace Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Argo Investments and Cleanspace Holdings
The main advantage of trading using opposite Argo Investments and Cleanspace Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Investments position performs unexpectedly, Cleanspace Holdings 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 Cleanspace Holdings will offset losses from the drop in Cleanspace Holdings' long position.Argo Investments vs. Bailador Technology Investments | Argo Investments vs. MFF Capital Investments | Argo Investments vs. Mount Gibson Iron | Argo Investments vs. Emvision Medical Devices |
Cleanspace Holdings vs. Air New Zealand | Cleanspace Holdings vs. Evolution Mining | Cleanspace Holdings vs. QBE Insurance Group | Cleanspace Holdings vs. Kalgoorlie Gold Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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