Correlation Between Jack Nathan and IMAC Holdings

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

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

Diversification Opportunities for Jack Nathan and IMAC Holdings

0.04

Correlation Coefficient

Jack Nathan  IMAC Holdings

Significant diversification

The 3 months correlation between Jack and IMAC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jack Nathan Medical and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings and Jack Nathan 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 Jack Nathan Medical 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 Jack Nathan i.e., Jack Nathan and IMAC Holdings go up and down completely randomly.

Pair Corralation between Jack Nathan and IMAC Holdings

Assuming the 90 days horizon Jack Nathan Medical is expected to generate 1.55 times more return on investment than IMAC Holdings. However, Jack Nathan is 1.55 times more volatile than IMAC Holdings. It trades about 0.06 of its potential returns per unit of risk. IMAC Holdings is currently generating about -0.2 per unit of risk. If you would invest  6.10  in Jack Nathan Medical on December 27, 2024 and sell it today you would lose (3.50) from holding Jack Nathan Medical or give up 57.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Jack Nathan Medical  vs.  IMAC Holdings

Jack Nathan Medical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jack Nathan Medical are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Jack Nathan reported solid returns over the last few months and may actually be approaching a breakup point.

IMAC Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days IMAC Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Jack Nathan and IMAC Holdings

The main advantage of trading using opposite Jack Nathan and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Nathan 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 Jack Nathan Medical 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.