Correlation Between NMC Health and IMAC Holdings

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

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

Diversification Opportunities for NMC Health and IMAC Holdings

0.0

Correlation Coefficient

NMC Health  IMAC Holdings

Pay attention - limited upside

The 3 months correlation between NMC and IMAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NMC Health PLC and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings and NMC Health 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 NMC Health PLC 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 NMC Health i.e., NMC Health and IMAC Holdings go up and down completely randomly.

Pair Corralation between NMC Health and IMAC Holdings

Assuming the 90 days horizon NMC Health PLC is expected to under-perform the IMAC Holdings. In addition to that, NMC Health is 1.34 times more volatile than IMAC Holdings. It trades about -0.11 of its total potential returns per unit of risk. IMAC Holdings is currently generating about -0.01 per unit of volatility. If you would invest  930.00  in IMAC Holdings on October 4, 2024 and sell it today you would lose (803.00) from holding IMAC Holdings or give up 86.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	26.46%
Values	Daily Returns

NMC Health PLC  vs.  IMAC Holdings

NMC Health PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NMC Health PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, NMC Health is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

IMAC Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in IMAC Holdings are ranked lower than 6 (%) 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 NMC Health and IMAC Holdings

The main advantage of trading using opposite NMC Health and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMC Health 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 NMC Health PLC 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.