Correlation Between Kirr Marbach and T Rowe

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

Diversification Opportunities for Kirr Marbach and T Rowe

0.98

Correlation Coefficient

Kirr Marbach  T Rowe

Almost no diversification

The 3 months correlation between Kirr and TBLCX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and T Rowe go up and down completely randomly.

Pair Corralation between Kirr Marbach and T Rowe

Assuming the 90 days horizon Kirr Marbach Partners is expected to generate 2.47 times more return on investment than T Rowe. However, Kirr Marbach is 2.47 times more volatile than T Rowe Price. It trades about 0.29 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.23 per unit of risk. If you would invest  3,224  in Kirr Marbach Partners on May 5, 2025 and sell it today you would earn a total of  484.00  from holding Kirr Marbach Partners or generate 15.01% 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.  T Rowe Price

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 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kirr Marbach showed solid returns over the last few months and may actually be approaching a breakup point.

T Rowe Price

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, T Rowe 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 T Rowe

The main advantage of trading using opposite Kirr Marbach and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirr Marbach position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind Kirr Marbach Partners and T Rowe Price 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.