Correlation Between IMAC Holdings and National Energy

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

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

Diversification Opportunities for IMAC Holdings and National Energy

0.61

Correlation Coefficient

IMAC Holdings  National Energy

Poor diversification

The 3 months correlation between IMAC and National is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and National Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Energy Services 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 National Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Energy Services has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and National Energy go up and down completely randomly.

Pair Corralation between IMAC Holdings and National Energy

If you would invest  39.00  in National Energy Services on October 25, 2024 and sell it today you would earn a total of  9.00  from holding National Energy Services or generate 23.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.56%
Values	Daily Returns

IMAC Holdings  vs.  National Energy Services

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.

National Energy Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days National Energy Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with IMAC Holdings and National Energy

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

The idea behind IMAC Holdings and National Energy Services 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..