Correlation Between Kirr Marbach and Select Equity

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

Diversification Opportunities for Kirr Marbach and Select Equity

0.95

Correlation Coefficient

Kirr Marbach  Select Equity

Almost no diversification

The 3 months correlation between Kirr and Select is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Select Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Equity 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 Select Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Equity has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Select Equity go up and down completely randomly.

Pair Corralation between Kirr Marbach and Select Equity

Assuming the 90 days horizon Kirr Marbach is expected to generate 2.24 times less return on investment than Select Equity. In addition to that, Kirr Marbach is 1.75 times more volatile than Select Equity Fund. It trades about 0.1 of its total potential returns per unit of risk. Select Equity Fund is currently generating about 0.37 per unit of volatility. If you would invest  1,672  in Select Equity Fund on July 1, 2025 and sell it today you would earn a total of  53.00  from holding Select Equity Fund or generate 3.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Kirr Marbach Partners  vs.  Select Equity Fund

Kirr Marbach Partners

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kirr Marbach Partners are ranked lower than 12 (%) 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 October 2025.

Select Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Select Equity Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Select Equity may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Kirr Marbach and Select Equity

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

The idea behind Kirr Marbach Partners and Select Equity Fund 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.