Correlation Between Castellum and Argo Blockchain

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

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

Diversification Opportunities for Castellum and Argo Blockchain

-0.53

Correlation Coefficient

Castellum  Argo Blockchain

Excellent diversification

The 3 months correlation between Castellum and Argo is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Castellum 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 Castellum 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 Castellum 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 Castellum i.e., Castellum and Argo Blockchain go up and down completely randomly.

Pair Corralation between Castellum and Argo Blockchain

Considering the 90-day investment horizon Castellum is expected to generate 0.55 times more return on investment than Argo Blockchain. However, Castellum is 1.82 times less risky than Argo Blockchain. It trades about 0.06 of its potential returns per unit of risk. Argo Blockchain plc is currently generating about -0.11 per unit of risk. If you would invest  105.00  in Castellum on May 15, 2025 and sell it today you would earn a total of  14.00  from holding Castellum or generate 13.33% return on investment over 90 days.

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

Castellum  vs.  Argo Blockchain plc

Castellum

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Castellum are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Castellum displayed solid returns over the last few months and may actually be approaching a breakup point.

Argo Blockchain plc

Risk-Adjusted Performance

Weakest

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 September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Castellum and Argo Blockchain

The main advantage of trading using opposite Castellum and Argo Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum 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 Castellum 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.