Correlation Between KNOT Offshore and Le@p Technology
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Le@p Technology 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 Le@p Technology 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 Lep Technology, you can compare the effects of market volatilities on KNOT Offshore and Le@p Technology 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 Le@p Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Le@p Technology.
Diversification Opportunities for KNOT Offshore and Le@p Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNOT and Le@p is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Lep Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Le@p Technology 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 Le@p Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Le@p Technology has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Le@p Technology go up and down completely randomly.
Pair Corralation between KNOT Offshore and Le@p Technology
If you would invest (100.00) in Lep Technology on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Lep Technology 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. Lep Technology
Performance |
| Timeline |
| KNOT Offshore Partners |
| Le@p Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KNOT Offshore and Le@p Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Le@p Technology
The main advantage of trading using opposite KNOT Offshore and Le@p Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Le@p Technology 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 Le@p Technology will offset losses from the drop in Le@p Technology'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 |
| Le@p Technology vs. Bluerock Homes Trust | Le@p Technology vs. Dave Busters Entertainment | Le@p Technology vs. Space Communication | Le@p Technology vs. PennantPark Floating Rate |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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