Correlation Between IMAC Holdings and Windtree Therapeutics
Can any of the company-specific risk be diversified away by investing in both IMAC Holdings and Windtree Therapeutics 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 Windtree Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMAC Holdings and Windtree Therapeutics, you can compare the effects of market volatilities on IMAC Holdings and Windtree Therapeutics 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 Windtree Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAC Holdings and Windtree Therapeutics.
Diversification Opportunities for IMAC Holdings and Windtree Therapeutics
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IMAC and Windtree is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and Windtree Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Windtree Therapeutics 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 Windtree Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Windtree Therapeutics has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and Windtree Therapeutics go up and down completely randomly.
Pair Corralation between IMAC Holdings and Windtree Therapeutics
Given the investment horizon of 90 days IMAC Holdings is expected to generate 0.87 times more return on investment than Windtree Therapeutics. However, IMAC Holdings is 1.14 times less risky than Windtree Therapeutics. It trades about -0.17 of its potential returns per unit of risk. Windtree Therapeutics is currently generating about -0.52 per unit of risk. If you would invest 127.00 in IMAC Holdings on August 26, 2024 and sell it today you would lose (19.00) from holding IMAC Holdings or give up 14.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IMAC Holdings vs. Windtree Therapeutics
Performance |
| Timeline |
| IMAC Holdings |
| Windtree Therapeutics |
IMAC Holdings and Windtree Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAC Holdings and Windtree Therapeutics
The main advantage of trading using opposite IMAC Holdings and Windtree Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAC Holdings position performs unexpectedly, Windtree Therapeutics 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 Windtree Therapeutics will offset losses from the drop in Windtree Therapeutics' long position.| IMAC Holdings vs. Heartbeam | IMAC Holdings vs. EUDA Health Holdings | IMAC Holdings vs. Nutex Health | IMAC Holdings vs. Healthcare Triangle |
| Windtree Therapeutics vs. Neurobo Pharmaceuticals | Windtree Therapeutics vs. Palisade Bio | Windtree Therapeutics vs. Lixte Biotechnology Holdings | Windtree Therapeutics vs. Avenue Therapeutics |
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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