Correlation Between IMAC Holdings and Lifestance Health
Can any of the company-specific risk be diversified away by investing in both IMAC Holdings and Lifestance 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 Lifestance 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 Lifestance Health Group, you can compare the effects of market volatilities on IMAC Holdings and Lifestance 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 Lifestance Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAC Holdings and Lifestance Health.
Diversification Opportunities for IMAC Holdings and Lifestance Health
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IMAC and Lifestance is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and Lifestance Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestance Health 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 Lifestance Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestance Health has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and Lifestance Health go up and down completely randomly.
Pair Corralation between IMAC Holdings and Lifestance Health
Assuming the 90 days horizon IMAC Holdings is expected to generate 41.48 times more return on investment than Lifestance Health. However, IMAC Holdings is 41.48 times more volatile than Lifestance Health Group. It trades about 0.21 of its potential returns per unit of risk. Lifestance Health Group is currently generating about 0.01 per unit of risk. If you would invest 2.00 in IMAC Holdings on August 31, 2024 and sell it today you would lose (1.00) from holding IMAC Holdings or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 7.22% |
| Values | Daily Returns |
IMAC Holdings vs. Lifestance Health Group
Performance |
| Timeline |
| IMAC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lifestance Health |
IMAC Holdings and Lifestance Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAC Holdings and Lifestance Health
The main advantage of trading using opposite IMAC Holdings and Lifestance Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAC Holdings position performs unexpectedly, Lifestance 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 Lifestance Health will offset losses from the drop in Lifestance Health's long position.The idea behind IMAC Holdings and Lifestance Health Group 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.| Lifestance Health vs. Pennant Group | Lifestance Health vs. Encompass Health Corp | Lifestance Health vs. Enhabit | Lifestance Health vs. Concord Medical Services |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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