Correlation Between Immutable and Concordium

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

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

Diversification Opportunities for Immutable and Concordium

0.24

Correlation Coefficient

Immutable  Concordium

Modest diversification

The 3 months correlation between Immutable and Concordium is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Immutable X and Concordium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concordium and Immutable 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 Immutable X 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 Immutable i.e., Immutable and Concordium go up and down completely randomly.

Pair Corralation between Immutable and Concordium

Assuming the 90 days trading horizon Immutable is expected to generate 10.72 times less return on investment than Concordium. But when comparing it to its historical volatility, Immutable X is 3.58 times less risky than Concordium. It trades about 0.04 of its potential returns per unit of risk. Concordium is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.47  in Concordium on April 29, 2025 and sell it today you would earn a total of  0.41  from holding Concordium or generate 87.19% return on investment over 90 days.

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

Immutable X  vs.  Concordium

Immutable X

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immutable X are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Immutable exhibited solid returns over the last few months and may actually be approaching a breakup point.

Concordium

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Concordium are ranked lower than 8 (%) 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 Immutable and Concordium

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

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.