Correlation Between Graham Holdings and Concorde Gaming

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

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

Diversification Opportunities for Graham Holdings and Concorde Gaming

0.0

Correlation Coefficient

Graham Holdings  Concorde Gaming

Pay attention - limited upside

The 3 months correlation between Graham and Concorde is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co and Concorde Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concorde Gaming and Graham Holdings 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 Graham Holdings Co are associated (or correlated) with Concorde Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concorde Gaming has no effect on the direction of Graham Holdings i.e., Graham Holdings and Concorde Gaming go up and down completely randomly.

Pair Corralation between Graham Holdings and Concorde Gaming

If you would invest  86,848  in Graham Holdings Co on December 19, 2024 and sell it today you would earn a total of  6,983  from holding Graham Holdings Co or generate 8.04% return on investment over 90 days.

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

Graham Holdings Co  vs.  Concorde Gaming

Graham Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Graham Holdings Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical indicators, Graham Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Concorde Gaming

Risk-Adjusted Performance

Very Weak

Over the last 90 days Concorde Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Concorde Gaming is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Graham Holdings and Concorde Gaming

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

The idea behind Graham Holdings Co and Concorde Gaming 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.