Correlation Between Visa and IMAC Holdings
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and IMAC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and IMAC Holdings, you can compare the effects of market volatilities on Visa 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 Visa with a short position of IMAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and IMAC Holdings.
Diversification Opportunities for Visa and IMAC Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and IMAC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings and Visa 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 Visa Class A 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 Visa i.e., Visa and IMAC Holdings go up and down completely randomly.
Pair Corralation between Visa and IMAC Holdings
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.05 times more return on investment than IMAC Holdings. However, Visa Class A is 19.45 times less risky than IMAC Holdings. It trades about 0.56 of its potential returns per unit of risk. IMAC Holdings is currently generating about -0.09 per unit of risk. If you would invest 31,260 in Visa Class A on November 9, 2024 and sell it today you would earn a total of 3,488 from holding Visa Class A or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. IMAC Holdings
Performance |
| Timeline |
| Visa Class A |
| IMAC Holdings |
Visa and IMAC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and IMAC Holdings
The main advantage of trading using opposite Visa and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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