Correlation Between Signet Jewelers and Argo Blockchain

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

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

Diversification Opportunities for Signet Jewelers and Argo Blockchain

-0.44

Correlation Coefficient

Signet Jewelers  Argo Blockchain

Very good diversification

The 3 months correlation between Signet and Argo is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Signet Jewelers 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 Signet Jewelers 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 Signet Jewelers 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 Signet Jewelers i.e., Signet Jewelers and Argo Blockchain go up and down completely randomly.

Pair Corralation between Signet Jewelers and Argo Blockchain

Considering the 90-day investment horizon Signet Jewelers is expected to generate 0.18 times more return on investment than Argo Blockchain. However, Signet Jewelers is 5.53 times less risky than Argo Blockchain. It trades about 0.16 of its potential returns per unit of risk. Argo Blockchain PLC is currently generating about 0.03 per unit of risk. If you would invest  6,235  in Signet Jewelers on May 19, 2025 and sell it today you would earn a total of  1,963  from holding Signet Jewelers or generate 31.48% return on investment over 90 days.

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

Signet Jewelers  vs.  Argo Blockchain PLC

Signet Jewelers

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Signet Jewelers are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent forward indicators, Signet Jewelers reported solid returns over the last few months and may actually be approaching a breakup point.

Argo Blockchain PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Blockchain PLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, Argo Blockchain disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Signet Jewelers and Argo Blockchain

The main advantage of trading using opposite Signet Jewelers and Argo Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signet Jewelers 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 Signet Jewelers 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.