Correlation Between EOSDAC and Concordium

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

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

Diversification Opportunities for EOSDAC and Concordium

-0.18

Correlation Coefficient

EOSDAC  Concordium

Good diversification

The 3 months correlation between EOSDAC and Concordium is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding EOSDAC and Concordium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concordium and EOSDAC 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 EOSDAC are associated (or correlated) with Concordium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concordium has no effect on the direction of EOSDAC i.e., EOSDAC and Concordium go up and down completely randomly.

Pair Corralation between EOSDAC and Concordium

Assuming the 90 days trading horizon EOSDAC is expected to generate 12.09 times less return on investment than Concordium. But when comparing it to its historical volatility, EOSDAC is 3.76 times less risky than Concordium. It trades about 0.04 of its potential returns per unit of risk. Concordium is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1.07  in Concordium on July 23, 2025 and sell it today you would earn a total of  0.87  from holding Concordium or generate 81.31% return on investment over 90 days.

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

EOSDAC  vs.  Concordium

EOSDAC

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in EOSDAC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, EOSDAC may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Concordium

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Concordium are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Concordium exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EOSDAC and Concordium

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

The idea behind EOSDAC and Concordium 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.