Correlation Between Knife River and EQOP
Can any of the company-specific risk be diversified away by investing in both Knife River and EQOP 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 Knife River and EQOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knife River and EQOP, you can compare the effects of market volatilities on Knife River and EQOP 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 Knife River with a short position of EQOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knife River and EQOP.
Diversification Opportunities for Knife River and EQOP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Knife and EQOP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Knife River and EQOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQOP and Knife River 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 Knife River are associated (or correlated) with EQOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQOP has no effect on the direction of Knife River i.e., Knife River and EQOP go up and down completely randomly.
Pair Corralation between Knife River and EQOP
If you would invest 4,857 in Knife River on January 9, 2025 and sell it today you would earn a total of 4,186 from holding Knife River or generate 86.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Knife River vs. EQOP
Performance |
| Timeline |
| Knife River |
| EQOP |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Knife River and EQOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knife River and EQOP
The main advantage of trading using opposite Knife River and EQOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knife River position performs unexpectedly, EQOP 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 EQOP will offset losses from the drop in EQOP's long position.| Knife River vs. Ameriprise Financial | Knife River vs. JBG SMITH Properties | Knife River vs. Carlyle Group | Knife River vs. Mid Atlantic Home Health |
| EQOP vs. FT Vest Equity | EQOP vs. Zillow Group Class | EQOP vs. Northern Lights | EQOP vs. VanEck Vectors Moodys |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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