Correlation Between KNOT Offshore and Inception Growth
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Inception Growth 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 Inception Growth 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 Inception Growth Acquisition, you can compare the effects of market volatilities on KNOT Offshore and Inception Growth 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 Inception Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Inception Growth.
Diversification Opportunities for KNOT Offshore and Inception Growth
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KNOT and Inception is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Inception Growth Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inception Growth Acq 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 Inception Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inception Growth Acq has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Inception Growth go up and down completely randomly.
Pair Corralation between KNOT Offshore and Inception Growth
If you would invest 548.00 in KNOT Offshore Partners on October 22, 2024 and sell it today you would earn a total of 43.00 from holding KNOT Offshore Partners or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 26.32% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Inception Growth Acquisition
Performance |
| Timeline |
| KNOT Offshore Partners |
| Inception Growth Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
KNOT Offshore and Inception Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Inception Growth
The main advantage of trading using opposite KNOT Offshore and Inception Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Inception Growth 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 Inception Growth will offset losses from the drop in Inception Growth'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 |
| Inception Growth vs. CDW Corp | Inception Growth vs. CarsalesCom Ltd ADR | Inception Growth vs. Infosys Ltd ADR | Inception Growth vs. Pinterest |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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