Correlation Between Kirr Marbach and Aperture New

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

Diversification Opportunities for Kirr Marbach and Aperture New

-0.28

Correlation Coefficient

Kirr Marbach  Aperture New

Very good diversification

The 3 months correlation between Kirr and Aperture is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Aperture New World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture New World 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 Aperture New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture New World has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Aperture New go up and down completely randomly.

Pair Corralation between Kirr Marbach and Aperture New

If you would invest  824.00  in Aperture New World on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Aperture New World or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Kirr Marbach Partners  vs.  Aperture New World

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.

Aperture New World

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aperture New World has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Aperture 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 Aperture New

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

The idea behind Kirr Marbach Partners and Aperture New World 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.