Correlation Between Concentra Group and Vindicator Silver

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

By analyzing existing cross correlation between Concentra Group Holdings and Vindicator Silver Lead Mining, you can compare the effects of market volatilities on Concentra Group and Vindicator Silver 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 Concentra Group with a short position of Vindicator Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentra Group and Vindicator Silver.

Diversification Opportunities for Concentra Group and Vindicator Silver

-0.28

Correlation Coefficient

Concentra Group  Vindicator Silver

Very good diversification

The 3 months correlation between Concentra and Vindicator is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Concentra Group Holdings and Vindicator Silver Lead Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vindicator Silver Lead and Concentra Group 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 Concentra Group Holdings are associated (or correlated) with Vindicator Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vindicator Silver Lead has no effect on the direction of Concentra Group i.e., Concentra Group and Vindicator Silver go up and down completely randomly.

Pair Corralation between Concentra Group and Vindicator Silver

Considering the 90-day investment horizon Concentra Group is expected to generate 6.73 times less return on investment than Vindicator Silver. But when comparing it to its historical volatility, Concentra Group Holdings is 5.33 times less risky than Vindicator Silver. It trades about 0.02 of its potential returns per unit of risk. Vindicator Silver Lead Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  26.00  in Vindicator Silver Lead Mining on November 28, 2024 and sell it today you would lose (15.00) from holding Vindicator Silver Lead Mining or give up 57.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	45.4%
Values	Daily Returns

Concentra Group Holdings  vs.  Vindicator Silver Lead Mining

Concentra Group Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Concentra Group Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Concentra Group may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Vindicator Silver Lead

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vindicator Silver Lead Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vindicator Silver is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Concentra Group and Vindicator Silver

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

The idea behind Concentra Group Holdings and Vindicator Silver Lead Mining 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.