Correlation Between KNOT Offshore and Aphria
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Aphria 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 KNOT Offshore and Aphria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KNOT Offshore Partners and Aphria Inc, you can compare the effects of market volatilities on KNOT Offshore and Aphria 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 KNOT Offshore with a short position of Aphria. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Aphria.
Diversification Opportunities for KNOT Offshore and Aphria
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNOT and Aphria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Aphria Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aphria Inc and KNOT Offshore 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 KNOT Offshore Partners are associated (or correlated) with Aphria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aphria Inc has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Aphria go up and down completely randomly.
Pair Corralation between KNOT Offshore and Aphria
If you would invest (100.00) in Aphria Inc on October 1, 2024 and sell it today you would earn a total of 100.00 from holding Aphria Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Aphria Inc
Performance |
| Timeline |
| KNOT Offshore Partners |
| Aphria Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KNOT Offshore and Aphria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Aphria
The main advantage of trading using opposite KNOT Offshore and Aphria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Aphria 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 Aphria will offset losses from the drop in Aphria's long position.| KNOT Offshore vs. USA Compression Partners | KNOT Offshore vs. Dynagas LNG Partners | KNOT Offshore vs. Crossamerica Partners LP | KNOT Offshore vs. Delek Logistics Partners |
| Aphria vs. Delek Logistics Partners | Aphria vs. TFI International | Aphria vs. Mesa Air Group | Aphria vs. Bright Scholar Education |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |