Correlation Between KNOT Offshore and Bellevue Life
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Bellevue Life 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 Bellevue Life 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 Bellevue Life Sciences, you can compare the effects of market volatilities on KNOT Offshore and Bellevue Life 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 Bellevue Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Bellevue Life.
Diversification Opportunities for KNOT Offshore and Bellevue Life
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between KNOT and Bellevue is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Bellevue Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Life Sciences 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 Bellevue Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Life Sciences has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Bellevue Life go up and down completely randomly.
Pair Corralation between KNOT Offshore and Bellevue Life
Given the investment horizon of 90 days KNOT Offshore is expected to generate 67.07 times less return on investment than Bellevue Life. But when comparing it to its historical volatility, KNOT Offshore Partners is 17.05 times less risky than Bellevue Life. It trades about 0.01 of its potential returns per unit of risk. Bellevue Life Sciences is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Bellevue Life Sciences on October 25, 2024 and sell it today you would earn a total of 1,131 from holding Bellevue Life Sciences or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.33% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Bellevue Life Sciences
Performance |
| Timeline |
| KNOT Offshore Partners |
| Bellevue Life Sciences |
KNOT Offshore and Bellevue Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Bellevue Life
The main advantage of trading using opposite KNOT Offshore and Bellevue Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Bellevue Life 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 Bellevue Life will offset losses from the drop in Bellevue Life'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 |
| Bellevue Life vs. Nicola Mining | Bellevue Life vs. United Utilities Group | Bellevue Life vs. NRG Energy | Bellevue Life vs. Enlight Renewable Energy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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