Correlation Between Kirr Marbach and Ab High
Can any of the company-specific risk be diversified away by investing in both Kirr Marbach and Ab High 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 Kirr Marbach and Ab High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirr Marbach Partners and Ab High Income, you can compare the effects of market volatilities on Kirr Marbach and Ab High 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 Kirr Marbach with a short position of Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirr Marbach and Ab High.
Diversification Opportunities for Kirr Marbach and Ab High
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kirr and AGDAX is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income and Kirr Marbach 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 Kirr Marbach Partners are associated (or correlated) with Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Ab High go up and down completely randomly.
Pair Corralation between Kirr Marbach and Ab High
Assuming the 90 days horizon Kirr Marbach Partners is expected to generate 8.99 times more return on investment than Ab High. However, Kirr Marbach is 8.99 times more volatile than Ab High Income. It trades about -0.03 of its potential returns per unit of risk. Ab High Income is currently generating about -0.44 per unit of risk. If you would invest 3,328 in Kirr Marbach Partners on October 14, 2024 and sell it today you would lose (27.00) from holding Kirr Marbach Partners or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirr Marbach Partners vs. Ab High Income
Performance |
| Timeline |
| Kirr Marbach Partners |
| Ab High Income |
Kirr Marbach and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirr Marbach and Ab High
The main advantage of trading using opposite Kirr Marbach and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirr Marbach position performs unexpectedly, Ab High 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 Ab High will offset losses from the drop in Ab High's long position.| Kirr Marbach vs. Touchstone Sands Capital | Kirr Marbach vs. Madison Mid Cap | Kirr Marbach vs. Harbor Mid Cap | Kirr Marbach vs. James Small Cap |
| Ab High vs. Kirr Marbach Partners | Ab High vs. Qs Large Cap | Ab High vs. Pabrai Wagons Institutional | Ab High vs. Rbc Microcap Value |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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