Correlation Between Digatrade Financial and Argo Blockchain

Can any of the company-specific risk be diversified away by investing in both Digatrade Financial and Argo Blockchain 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 Digatrade Financial and Argo Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Digatrade Financial Corp and Argo Blockchain PLC, you can compare the effects of market volatilities on Digatrade Financial and Argo Blockchain 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 Digatrade Financial with a short position of Argo Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digatrade Financial and Argo Blockchain.

Diversification Opportunities for Digatrade Financial and Argo Blockchain

0.0

Correlation Coefficient

Digatrade Financial  Argo Blockchain

Pay attention - limited upside

The 3 months correlation between Digatrade and Argo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digatrade Financial Corp and Argo Blockchain PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Blockchain PLC and Digatrade Financial 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 Digatrade Financial Corp are associated (or correlated) with Argo Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Blockchain PLC has no effect on the direction of Digatrade Financial i.e., Digatrade Financial and Argo Blockchain go up and down completely randomly.

Pair Corralation between Digatrade Financial and Argo Blockchain

If you would invest  5.30  in Argo Blockchain PLC on December 29, 2024 and sell it today you would lose (1.80) from holding Argo Blockchain PLC or give up 33.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Digatrade Financial Corp  vs.  Argo Blockchain PLC

Digatrade Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Digatrade Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Digatrade Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

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 nearly stable forward-looking signals, Argo Blockchain is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Digatrade Financial and Argo Blockchain

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

The idea behind Digatrade Financial Corp and Argo Blockchain PLC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.