Correlation Between Kirr Marbach and Leland Thomson

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kirr Marbach and Leland Thomson 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 Leland Thomson 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 Leland Thomson Reuters, you can compare the effects of market volatilities on Kirr Marbach and Leland Thomson 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 Leland Thomson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirr Marbach and Leland Thomson.

Diversification Opportunities for Kirr Marbach and Leland Thomson

0.45
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Kirr and Leland is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kirr Marbach Partners and Leland Thomson Reuters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leland Thomson Reuters 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 Leland Thomson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leland Thomson Reuters has no effect on the direction of Kirr Marbach i.e., Kirr Marbach and Leland Thomson go up and down completely randomly.

Pair Corralation between Kirr Marbach and Leland Thomson

Assuming the 90 days horizon Kirr Marbach Partners is expected to under-perform the Leland Thomson. But the mutual fund apears to be less risky and, when comparing its historical volatility, Kirr Marbach Partners is 1.31 times less risky than Leland Thomson. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Leland Thomson Reuters is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,835  in Leland Thomson Reuters on August 21, 2025 and sell it today you would lose (14.00) from holding Leland Thomson Reuters or give up 0.49% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Kirr Marbach Partners  vs.  Leland Thomson Reuters

 Performance 
       Timeline  
Kirr Marbach Partners 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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.
Leland Thomson Reuters 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Leland Thomson Reuters has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Leland Thomson is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kirr Marbach and Leland Thomson Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kirr Marbach and Leland Thomson

The main advantage of trading using opposite Kirr Marbach and Leland Thomson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirr Marbach position performs unexpectedly, Leland Thomson 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 Leland Thomson will offset losses from the drop in Leland Thomson's long position.
The idea behind Kirr Marbach Partners and Leland Thomson Reuters 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.