Correlation Between Kirr Marbach and Towpath Technology
Can any of the company-specific risk be diversified away by investing in both Kirr Marbach and Towpath Technology 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 Towpath Technology 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 Towpath Technology, you can compare the effects of market volatilities on Kirr Marbach and Towpath Technology 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 Towpath Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirr Marbach and Towpath Technology.
Diversification Opportunities for Kirr Marbach and Towpath Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kirr and Towpath is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Towpath Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Towpath Technology 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 Towpath Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Towpath Technology has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Towpath Technology go up and down completely randomly.
Pair Corralation between Kirr Marbach and Towpath Technology
Assuming the 90 days horizon Kirr Marbach Partners is expected to under-perform the Towpath Technology. In addition to that, Kirr Marbach is 1.66 times more volatile than Towpath Technology. It trades about -0.03 of its total potential returns per unit of risk. Towpath Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,398 in Towpath Technology on October 19, 2024 and sell it today you would earn a total of 22.00 from holding Towpath Technology or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirr Marbach Partners vs. Towpath Technology
Performance |
| Timeline |
| Kirr Marbach Partners |
| Towpath Technology |
Kirr Marbach and Towpath Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirr Marbach and Towpath Technology
The main advantage of trading using opposite Kirr Marbach and Towpath Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirr Marbach position performs unexpectedly, Towpath Technology 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 Towpath Technology will offset losses from the drop in Towpath Technology'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 |
| Towpath Technology vs. Fmasx | Towpath Technology vs. Semiconductor Ultrasector Profund | Towpath Technology vs. Victory Rs Partners | Towpath Technology vs. Kirr Marbach Partners |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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