Correlation Between KNOT Offshore and Jutal Offshore
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Jutal Offshore 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 Jutal Offshore 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 Jutal Offshore Oil, you can compare the effects of market volatilities on KNOT Offshore and Jutal Offshore 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 Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Jutal Offshore.
Diversification Opportunities for KNOT Offshore and Jutal Offshore
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNOT and Jutal is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil 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 Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Jutal Offshore go up and down completely randomly.
Pair Corralation between KNOT Offshore and Jutal Offshore
If you would invest 1,910 in Jutal Offshore Oil on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Jutal Offshore Oil or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Jutal Offshore Oil
Performance |
| Timeline |
| KNOT Offshore Partners |
| Jutal Offshore Oil |
KNOT Offshore and Jutal Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Jutal Offshore
The main advantage of trading using opposite KNOT Offshore and Jutal Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Jutal Offshore 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 Jutal Offshore will offset losses from the drop in Jutal Offshore'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 |
| Jutal Offshore vs. Expro Group Holdings | Jutal Offshore vs. ChampionX | Jutal Offshore vs. Ranger Energy Services | Jutal Offshore vs. Cactus Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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