Correlation Between Argo Blockchain and Coin Citadel

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

Diversification Opportunities for Argo Blockchain and Coin Citadel

0.35

Correlation Coefficient

Argo Blockchain  Coin Citadel

Weak diversification

The 3 months correlation between Argo and Coin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain PLC and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel 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 Coin Citadel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coin Citadel has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Coin Citadel go up and down completely randomly.

Pair Corralation between Argo Blockchain and Coin Citadel

Assuming the 90 days horizon Argo Blockchain PLC is expected to under-perform the Coin Citadel. But the pink sheet apears to be less risky and, when comparing its historical volatility, Argo Blockchain PLC is 1.92 times less risky than Coin Citadel. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Coin Citadel is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Coin Citadel on December 27, 2024 and sell it today you would lose (0.01) from holding Coin Citadel or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Argo Blockchain PLC  vs.  Coin Citadel

Argo Blockchain PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argo Blockchain PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Coin Citadel

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Coin Citadel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Argo Blockchain and Coin Citadel

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

The idea behind Argo Blockchain PLC and Coin Citadel 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.