Correlation Between KNOT Offshore and Here Media
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Here Media 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 Here Media 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 Here Media, you can compare the effects of market volatilities on KNOT Offshore and Here Media 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 Here Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Here Media.
Diversification Opportunities for KNOT Offshore and Here Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNOT and Here is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Here Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Here Media 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 Here Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Here Media has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Here Media go up and down completely randomly.
Pair Corralation between KNOT Offshore and Here Media
If you would invest 0.02 in Here Media on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Here Media or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Here Media
Performance |
| Timeline |
| KNOT Offshore Partners |
| Here Media |
KNOT Offshore and Here Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Here Media
The main advantage of trading using opposite KNOT Offshore and Here Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Here Media 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 Here Media will offset losses from the drop in Here Media'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 |
| Here Media vs. Barings BDC | Here Media vs. Freedom Bank of | Here Media vs. Casio Computer Co | Here Media vs. Asure Software |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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