Correlation Between Concordium and EOSDAC

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

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

Diversification Opportunities for Concordium and EOSDAC

0.14

Correlation Coefficient

Concordium  EOSDAC

Average diversification

The 3 months correlation between Concordium and EOSDAC is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Concordium and EOSDAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOSDAC and Concordium 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 Concordium are associated (or correlated) with EOSDAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOSDAC has no effect on the direction of Concordium i.e., Concordium and EOSDAC go up and down completely randomly.

Pair Corralation between Concordium and EOSDAC

Assuming the 90 days trading horizon Concordium is expected to generate 6.82 times more return on investment than EOSDAC. However, Concordium is 6.82 times more volatile than EOSDAC. It trades about 0.16 of its potential returns per unit of risk. EOSDAC is currently generating about 0.18 per unit of risk. If you would invest  0.47  in Concordium on July 10, 2025 and sell it today you would earn a total of  1.23  from holding Concordium or generate 261.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Concordium  vs.  EOSDAC

Concordium

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Concordium are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Concordium exhibited solid returns over the last few months and may actually be approaching a breakup point.

EOSDAC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EOSDAC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, EOSDAC sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Concordium and EOSDAC

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

The idea behind Concordium and EOSDAC 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.