Correlation Between Numinus Wellness and IMAC Holdings
Can any of the company-specific risk be diversified away by investing in both Numinus Wellness 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 Numinus Wellness and IMAC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Numinus Wellness and IMAC Holdings, you can compare the effects of market volatilities on Numinus Wellness 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 Numinus Wellness with a short position of IMAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Numinus Wellness and IMAC Holdings.
Diversification Opportunities for Numinus Wellness and IMAC Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Numinus and IMAC is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Numinus Wellness and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings and Numinus Wellness 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 Numinus Wellness 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 Numinus Wellness i.e., Numinus Wellness and IMAC Holdings go up and down completely randomly.
Pair Corralation between Numinus Wellness and IMAC Holdings
Assuming the 90 days horizon Numinus Wellness is expected to generate 1.2 times less return on investment than IMAC Holdings. In addition to that, Numinus Wellness is 1.24 times more volatile than IMAC Holdings. It trades about 0.09 of its total potential returns per unit of risk. IMAC Holdings is currently generating about 0.13 per unit of volatility. If you would invest 115.00 in IMAC Holdings on October 15, 2024 and sell it today you would earn a total of 12.00 from holding IMAC Holdings or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Numinus Wellness vs. IMAC Holdings
Performance |
| Timeline |
| Numinus Wellness |
| IMAC Holdings |
Numinus Wellness and IMAC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Numinus Wellness and IMAC Holdings
The main advantage of trading using opposite Numinus Wellness and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Numinus Wellness 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.| Numinus Wellness vs. Concord Medical Services | Numinus Wellness vs. American Shared Hospital | Numinus Wellness vs. Sonida Senior Living | Numinus Wellness vs. Oncology Institute |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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