Correlation Between NYSE Composite and Kirr Marbach
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kirr Marbach 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 NYSE Composite and Kirr Marbach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kirr Marbach Partners, you can compare the effects of market volatilities on NYSE Composite and Kirr Marbach 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 NYSE Composite with a short position of Kirr Marbach. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kirr Marbach.
Diversification Opportunities for NYSE Composite and Kirr Marbach
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Kirr is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kirr Marbach Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirr Marbach Partners and NYSE Composite 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 NYSE Composite are associated (or correlated) with Kirr Marbach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirr Marbach Partners has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kirr Marbach go up and down completely randomly.
Pair Corralation between NYSE Composite and Kirr Marbach
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.36 times more return on investment than Kirr Marbach. However, NYSE Composite is 2.8 times less risky than Kirr Marbach. It trades about -0.21 of its potential returns per unit of risk. Kirr Marbach Partners is currently generating about -0.13 per unit of risk. If you would invest 1,988,190 in NYSE Composite on October 11, 2024 and sell it today you would lose (64,116) from holding NYSE Composite or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Kirr Marbach Partners
Performance |
| Timeline |
NYSE Composite and Kirr Marbach Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kirr Marbach Partners
Pair trading matchups for Kirr Marbach
Pair Trading with NYSE Composite and Kirr Marbach
The main advantage of trading using opposite NYSE Composite and Kirr Marbach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kirr Marbach 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 Kirr Marbach will offset losses from the drop in Kirr Marbach's long position.| NYSE Composite vs. ANTA Sports Products | NYSE Composite vs. Global E Online | NYSE Composite vs. Sonos Inc | NYSE Composite vs. Mattel Inc |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |