Correlation Between American Beacon and Kirr Marbach
Can any of the company-specific risk be diversified away by investing in both American Beacon and Kirr Marbach 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 American Beacon and Kirr Marbach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Balanced and Kirr Marbach Partners, you can compare the effects of market volatilities on American Beacon and Kirr Marbach 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 American Beacon with a short position of Kirr Marbach. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Kirr Marbach.
Diversification Opportunities for American Beacon and Kirr Marbach
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and Kirr is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Balanced and Kirr Marbach Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirr Marbach Partners and American Beacon 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 American Beacon Balanced are associated (or correlated) with Kirr Marbach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirr Marbach Partners has no effect on the direction of American Beacon i.e., American Beacon and Kirr Marbach go up and down completely randomly.
Pair Corralation between American Beacon and Kirr Marbach
Assuming the 90 days horizon American Beacon Balanced is expected to generate 0.48 times more return on investment than Kirr Marbach. However, American Beacon Balanced is 2.06 times less risky than Kirr Marbach. It trades about 0.09 of its potential returns per unit of risk. Kirr Marbach Partners is currently generating about -0.03 per unit of risk. If you would invest 1,226 in American Beacon Balanced on September 9, 2025 and sell it today you would earn a total of 33.00 from holding American Beacon Balanced or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
American Beacon Balanced vs. Kirr Marbach Partners
Performance |
| Timeline |
| American Beacon Balanced |
| Kirr Marbach Partners |
American Beacon and Kirr Marbach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Kirr Marbach
The main advantage of trading using opposite American Beacon and Kirr Marbach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Kirr Marbach 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 Kirr Marbach will offset losses from the drop in Kirr Marbach's long position.| American Beacon vs. Voya Emerging Markets | American Beacon vs. Carlyle Credit Income | American Beacon vs. Paradigm Select Fund | American Beacon vs. Wells Fargo Global |
| Kirr Marbach vs. Grandeur Peak Global | Kirr Marbach vs. Riskproreg Pfg 0 15 | Kirr Marbach vs. 13d Activist Fund | Kirr Marbach vs. Voya Emerging Markets |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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