Correlation Between IMAC Holdings and International General
Can any of the company-specific risk be diversified away by investing in both IMAC Holdings and International General 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 International General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMAC Holdings and International General Insurance, you can compare the effects of market volatilities on IMAC Holdings and International General 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 International General. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAC Holdings and International General.
Diversification Opportunities for IMAC Holdings and International General
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IMAC and International is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and International General Insuranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International General 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 International General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International General has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and International General go up and down completely randomly.
Pair Corralation between IMAC Holdings and International General
Assuming the 90 days horizon IMAC Holdings is expected to generate 47.36 times more return on investment than International General. However, IMAC Holdings is 47.36 times more volatile than International General Insurance. It trades about 0.17 of its potential returns per unit of risk. International General Insurance is currently generating about 0.14 per unit of risk. If you would invest 5.18 in IMAC Holdings on August 31, 2024 and sell it today you would lose (4.18) from holding IMAC Holdings or give up 80.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 17.82% |
| Values | Daily Returns |
IMAC Holdings vs. International General Insuranc
Performance |
| Timeline |
| IMAC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| International General |
IMAC Holdings and International General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAC Holdings and International General
The main advantage of trading using opposite IMAC Holdings and International General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAC Holdings position performs unexpectedly, International General 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 International General will offset losses from the drop in International General's long position.The idea behind IMAC Holdings and International General Insurance 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.| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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