Correlation Between Kirr Marbach and Calamos Timpani
Can any of the company-specific risk be diversified away by investing in both Kirr Marbach and Calamos Timpani 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 Calamos Timpani 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 Calamos Timpani Small, you can compare the effects of market volatilities on Kirr Marbach and Calamos Timpani 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 Calamos Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirr Marbach and Calamos Timpani.
Diversification Opportunities for Kirr Marbach and Calamos Timpani
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kirr and Calamos is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Calamos Timpani Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Small 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 Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Small has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Calamos Timpani go up and down completely randomly.
Pair Corralation between Kirr Marbach and Calamos Timpani
Assuming the 90 days horizon Kirr Marbach Partners is expected to under-perform the Calamos Timpani. In addition to that, Kirr Marbach is 1.29 times more volatile than Calamos Timpani Small. It trades about -0.13 of its total potential returns per unit of risk. Calamos Timpani Small is currently generating about -0.15 per unit of volatility. If you would invest 3,952 in Calamos Timpani Small on October 9, 2024 and sell it today you would lose (203.00) from holding Calamos Timpani Small or give up 5.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirr Marbach Partners vs. Calamos Timpani Small
Performance |
| Timeline |
| Kirr Marbach Partners |
| Calamos Timpani Small |
Kirr Marbach and Calamos Timpani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirr Marbach and Calamos Timpani
The main advantage of trading using opposite Kirr Marbach and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirr Marbach position performs unexpectedly, Calamos Timpani 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 Calamos Timpani will offset losses from the drop in Calamos Timpani'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 |
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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