Correlation Between Heartbeam and IMAC Holdings

Can any of the company-specific risk be diversified away by investing in both Heartbeam 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 Heartbeam and IMAC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Heartbeam and IMAC Holdings, you can compare the effects of market volatilities on Heartbeam 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 Heartbeam with a short position of IMAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heartbeam and IMAC Holdings.

Diversification Opportunities for Heartbeam and IMAC Holdings

-0.26

Correlation Coefficient

Heartbeam  IMAC Holdings

Very good diversification

The 3 months correlation between Heartbeam and IMAC is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Heartbeam and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings and Heartbeam 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 Heartbeam 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 Heartbeam i.e., Heartbeam and IMAC Holdings go up and down completely randomly.

Pair Corralation between Heartbeam and IMAC Holdings

Given the investment horizon of 90 days Heartbeam is expected to under-perform the IMAC Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Heartbeam is 1.0 times less risky than IMAC Holdings. The stock trades about -0.34 of its potential returns per unit of risk. The IMAC Holdings is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  111.00  in IMAC Holdings on October 6, 2024 and sell it today you would earn a total of  30.00  from holding IMAC Holdings or generate 27.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Heartbeam  vs.  IMAC Holdings

Heartbeam

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Heartbeam are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Heartbeam may actually be approaching a critical reversion point that can send shares even higher in February 2025.

IMAC Holdings

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in IMAC Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, IMAC Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Heartbeam and IMAC Holdings

The main advantage of trading using opposite Heartbeam and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartbeam 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.

The idea behind Heartbeam and IMAC Holdings 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.