Correlation Between Argo Blockchain and Synchronoss Technologies

Can any of the company-specific risk be diversified away by investing in both Argo Blockchain and Synchronoss Technologies 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 Synchronoss Technologies 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 Synchronoss Technologies 8375, you can compare the effects of market volatilities on Argo Blockchain and Synchronoss Technologies 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 Synchronoss Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Blockchain and Synchronoss Technologies.

Diversification Opportunities for Argo Blockchain and Synchronoss Technologies

-0.47

Correlation Coefficient

Argo Blockchain  Synchronoss Technologies

Very good diversification

The 3 months correlation between Argo and Synchronoss is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Argo Blockchain plc and Synchronoss Technologies 8375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synchronoss Technologies 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 Synchronoss Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synchronoss Technologies has no effect on the direction of Argo Blockchain i.e., Argo Blockchain and Synchronoss Technologies go up and down completely randomly.

Pair Corralation between Argo Blockchain and Synchronoss Technologies

Assuming the 90 days horizon Argo Blockchain plc is expected to generate 3.38 times more return on investment than Synchronoss Technologies. However, Argo Blockchain is 3.38 times more volatile than Synchronoss Technologies 8375. It trades about 0.07 of its potential returns per unit of risk. Synchronoss Technologies 8375 is currently generating about 0.1 per unit of risk. If you would invest  303.00  in Argo Blockchain plc on October 15, 2024 and sell it today you would earn a total of  472.00  from holding Argo Blockchain plc or generate 155.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Argo Blockchain plc  vs.  Synchronoss Technologies 8375

Argo Blockchain plc

Risk-Adjusted Performance

0 of 100

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 conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Synchronoss Technologies

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Synchronoss Technologies 8375 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Synchronoss Technologies is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Argo Blockchain and Synchronoss Technologies

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

The idea behind Argo Blockchain plc and Synchronoss Technologies 8375 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.