Correlation Between Dow Jones and IMAC Holdings
Can any of the company-specific risk be diversified away by investing in both Dow Jones and IMAC Holdings 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 Dow Jones and IMAC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and IMAC Holdings, you can compare the effects of market volatilities on Dow Jones and IMAC Holdings 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 Dow Jones with a short position of IMAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and IMAC Holdings.
Diversification Opportunities for Dow Jones and IMAC Holdings
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and IMAC is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with IMAC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAC Holdings has no effect on the direction of Dow Jones i.e., Dow Jones and IMAC Holdings go up and down completely randomly.
Pair Corralation between Dow Jones and IMAC Holdings
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.04 times more return on investment than IMAC Holdings. However, Dow Jones Industrial is 24.95 times less risky than IMAC Holdings. It trades about 0.33 of its potential returns per unit of risk. IMAC Holdings is currently generating about -0.09 per unit of risk. If you would invest 4,263,520 in Dow Jones Industrial on November 9, 2024 and sell it today you would earn a total of 211,243 from holding Dow Jones Industrial or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. IMAC Holdings
Performance |
| Timeline |
Dow Jones and IMAC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
IMAC Holdings
Pair trading matchups for IMAC Holdings
Pair Trading with Dow Jones and IMAC Holdings
The main advantage of trading using opposite Dow Jones and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, IMAC Holdings 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 IMAC Holdings will offset losses from the drop in IMAC Holdings' long position.| Dow Jones vs. Douglas Emmett | Dow Jones vs. Todos Medical | Dow Jones vs. Eastern Co | Dow Jones vs. Merit Medical Systems |
| IMAC Holdings vs. Oncology Institute | IMAC Holdings vs. Aveanna Healthcare Holdings | IMAC Holdings vs. P3 Health Partners | IMAC Holdings vs. HCA Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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