Sector Risk Concentration

Sector Risk Concentration evaluates capital clustering and vulnerability within specific industry groups. It tracks exposure concentration in high-beta or structurally leveraged sectors. Correlation strength within sectors is measured to assess contagion risk. Liquidity sensitivity and valuation extension are incorporated into the framework. Capital inflow imbalance relative to earnings sustainability is systematically evaluated. The purpose is to identify sectors where structural risk may be disproportionately concentrated.