Correlation Between Kirr Marbach and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Kirr Marbach and Tekla Healthcare 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 Tekla Healthcare 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 Tekla Healthcare Investors, you can compare the effects of market volatilities on Kirr Marbach and Tekla Healthcare 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 Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirr Marbach and Tekla Healthcare.
Diversification Opportunities for Kirr Marbach and Tekla Healthcare
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kirr and Tekla is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv 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 Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Kirr Marbach and Tekla Healthcare
Assuming the 90 days horizon Kirr Marbach Partners is expected to generate 1.99 times more return on investment than Tekla Healthcare. However, Kirr Marbach is 1.99 times more volatile than Tekla Healthcare Investors. It trades about 0.13 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about 0.24 per unit of risk. If you would invest 3,254 in Kirr Marbach Partners on November 2, 2024 and sell it today you would earn a total of 150.00 from holding Kirr Marbach Partners or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirr Marbach Partners vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Kirr Marbach Partners |
| Tekla Healthcare Inv |
Kirr Marbach and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirr Marbach and Tekla Healthcare
The main advantage of trading using opposite Kirr Marbach and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirr Marbach position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare'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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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