Correlation Between GCL Global and Argo Blockchain
Can any of the company-specific risk be diversified away by investing in both GCL Global 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 GCL Global and Argo Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCL Global Holdings and Argo Blockchain plc, you can compare the effects of market volatilities on GCL Global 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 GCL Global with a short position of Argo Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCL Global and Argo Blockchain.
Diversification Opportunities for GCL Global and Argo Blockchain
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCL and Argo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GCL Global Holdings 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 GCL Global 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 GCL Global Holdings 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 GCL Global i.e., GCL Global and Argo Blockchain go up and down completely randomly.
Pair Corralation between GCL Global and Argo Blockchain
Assuming the 90 days horizon GCL Global Holdings is expected to generate 2.32 times more return on investment than Argo Blockchain. However, GCL Global is 2.32 times more volatile than Argo Blockchain plc. It trades about 0.13 of its potential returns per unit of risk. Argo Blockchain plc is currently generating about -0.07 per unit of risk. If you would invest 5.50 in GCL Global Holdings on April 25, 2025 and sell it today you would earn a total of 2.96 from holding GCL Global Holdings or generate 53.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 72.13% |
Values | Daily Returns |
GCL Global Holdings vs. Argo Blockchain plc
Performance |
Timeline |
GCL Global Holdings |
Argo Blockchain plc |
GCL Global and Argo Blockchain Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GCL Global and Argo Blockchain
The main advantage of trading using opposite GCL Global and Argo Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCL Global 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.GCL Global vs. Bright Minds Biosciences | GCL Global vs. Oatly Group AB | GCL Global vs. Anheuser Busch Inbev | GCL Global vs. ScanSource |
Argo Blockchain vs. Atlanticus Holdings | Argo Blockchain vs. Fossil Group 7 | Argo Blockchain vs. Greenidge Generation Holdings | Argo Blockchain vs. Harrow Health 8625 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |