Correlation Between IMAC Holdings and Pao

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

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

Diversification Opportunities for IMAC Holdings and Pao

0.57

Correlation Coefficient

IMAC Holdings  Pao

Very weak diversification

The 3 months correlation between IMAC and Pao is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and Pao Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pao Group 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 Pao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pao Group has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and Pao go up and down completely randomly.

Pair Corralation between IMAC Holdings and Pao

Given the investment horizon of 90 days IMAC Holdings is expected to generate 0.74 times more return on investment than Pao. However, IMAC Holdings is 1.35 times less risky than Pao. It trades about -0.04 of its potential returns per unit of risk. Pao Group is currently generating about -0.22 per unit of risk. If you would invest  127.00  in IMAC Holdings on September 12, 2024 and sell it today you would lose (7.00) from holding IMAC Holdings or give up 5.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

IMAC Holdings  vs.  Pao Group

IMAC Holdings

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IMAC Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, IMAC Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pao Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pao Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, Pao may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with IMAC Holdings and Pao

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

The idea behind IMAC Holdings and Pao Group 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..