Correlation Between IMAC Holdings and Airsculpt Technologies

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

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

Diversification Opportunities for IMAC Holdings and Airsculpt Technologies

-0.56

Correlation Coefficient

IMAC Holdings  Airsculpt Technologies

Excellent diversification

The 3 months correlation between IMAC and Airsculpt is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and Airsculpt Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airsculpt Technologies 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 Airsculpt Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airsculpt Technologies has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and Airsculpt Technologies go up and down completely randomly.

Pair Corralation between IMAC Holdings and Airsculpt Technologies

If you would invest  532.00  in Airsculpt Technologies on September 23, 2024 and sell it today you would earn a total of  3.00  from holding Airsculpt Technologies or generate 0.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	2.33%
Values	Daily Returns

IMAC Holdings  vs.  Airsculpt Technologies

IMAC Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IMAC Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, IMAC Holdings is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Airsculpt Technologies

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Airsculpt Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Airsculpt Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with IMAC Holdings and Airsculpt Technologies

The main advantage of trading using opposite IMAC Holdings and Airsculpt Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAC Holdings position performs unexpectedly, Airsculpt Technologies 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 Airsculpt Technologies will offset losses from the drop in Airsculpt Technologies' long position.

The idea behind IMAC Holdings and Airsculpt Technologies 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.