Correlation Between IMAC Holdings and NMC Health
Can any of the company-specific risk be diversified away by investing in both IMAC Holdings and NMC Health 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 IMAC Holdings and NMC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMAC Holdings and NMC Health PLC, you can compare the effects of market volatilities on IMAC Holdings and NMC Health 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 IMAC Holdings with a short position of NMC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAC Holdings and NMC Health.
Diversification Opportunities for IMAC Holdings and NMC Health
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between IMAC and NMC is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and NMC Health PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMC Health PLC and IMAC 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 IMAC Holdings are associated (or correlated) with NMC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMC Health PLC has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and NMC Health go up and down completely randomly.
Pair Corralation between IMAC Holdings and NMC Health
Given the investment horizon of 90 days IMAC Holdings is expected to generate 0.71 times more return on investment than NMC Health. However, IMAC Holdings is 1.4 times less risky than NMC Health. It trades about -0.01 of its potential returns per unit of risk. NMC Health PLC is currently generating about -0.12 per unit of risk. If you would invest 975.00 in IMAC Holdings on September 26, 2024 and sell it today you would lose (854.00) from holding IMAC Holdings or give up 87.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 24.42% |
| Values | Daily Returns |
IMAC Holdings vs. NMC Health PLC
Performance |
| Timeline |
| IMAC Holdings |
| NMC Health PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IMAC Holdings and NMC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAC Holdings and NMC Health
The main advantage of trading using opposite IMAC Holdings and NMC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAC Holdings position performs unexpectedly, NMC Health 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 NMC Health will offset losses from the drop in NMC Health's long position.| IMAC Holdings vs. Cigna Corp | IMAC Holdings vs. Definitive Healthcare Corp | IMAC Holdings vs. Guardant Health | IMAC Holdings vs. Laboratory of |
| NMC Health vs. Veltex | NMC Health vs. Numinus Wellness | NMC Health vs. IMAC Holdings | NMC Health vs. P3 Health Partners |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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