Correlation Between Kirr Marbach and Commodity Return

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

Diversification Opportunities for Kirr Marbach and Commodity Return

0.09

Correlation Coefficient

Kirr Marbach  Commodity Return

Significant diversification

The 3 months correlation between Kirr and Commodity is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Commodity Return Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodity Return Strategy 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 Commodity Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodity Return Strategy has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Commodity Return go up and down completely randomly.

Pair Corralation between Kirr Marbach and Commodity Return

Assuming the 90 days horizon Kirr Marbach Partners is expected to generate 0.98 times more return on investment than Commodity Return. However, Kirr Marbach Partners is 1.02 times less risky than Commodity Return. It trades about 0.27 of its potential returns per unit of risk. Commodity Return Strategy is currently generating about 0.01 per unit of risk. If you would invest  3,403  in Kirr Marbach Partners on May 16, 2025 and sell it today you would earn a total of  440.00  from holding Kirr Marbach Partners or generate 12.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Kirr Marbach Partners  vs.  Commodity Return Strategy

Kirr Marbach Partners

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kirr Marbach Partners are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kirr Marbach may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Commodity Return Strategy

Risk-Adjusted Performance

Weakest

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

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

The idea behind Kirr Marbach Partners and Commodity Return Strategy 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.