Correlation Between Kirr Marbach and Ab New

Can any of the company-specific risk be diversified away by investing in both Kirr Marbach and Ab New 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 New 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 New York, you can compare the effects of market volatilities on Kirr Marbach and Ab New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirr Marbach and Ab New.

Diversification Opportunities for Kirr Marbach and Ab New

0.61

Correlation Coefficient

Kirr Marbach  Ab New

Poor diversification

The 3 months correlation between Kirr and ALNVX is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Ab New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab New York 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab New York has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Ab New go up and down completely randomly.

Pair Corralation between Kirr Marbach and Ab New

Assuming the 90 days horizon Kirr Marbach Partners is expected to under-perform the Ab New. In addition to that, Kirr Marbach is 9.16 times more volatile than Ab New York. It trades about -0.13 of its total potential returns per unit of risk. Ab New York is currently generating about -0.35 per unit of volatility. If you would invest  945.00  in Ab New York on October 9, 2024 and sell it today you would lose (15.00) from holding Ab New York or give up 1.59% 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.  Ab New York

Kirr Marbach Partners

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kirr Marbach Partners has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Kirr Marbach is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ab New York

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ab New York has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ab New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kirr Marbach and Ab New

The main advantage of trading using opposite Kirr Marbach and Ab New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirr Marbach position performs unexpectedly, Ab New 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 New will offset losses from the drop in Ab New's long position.

The idea behind Kirr Marbach Partners and Ab New York pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.