Correlation Between KNOT Offshore and Saia
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Saia 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 Saia 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 Saia Inc, you can compare the effects of market volatilities on KNOT Offshore and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Saia.
Diversification Opportunities for KNOT Offshore and Saia
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNOT and Saia is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Saia go up and down completely randomly.
Pair Corralation between KNOT Offshore and Saia
Given the investment horizon of 90 days KNOT Offshore Partners is expected to under-perform the Saia. In addition to that, KNOT Offshore is 1.07 times more volatile than Saia Inc. It trades about -0.02 of its total potential returns per unit of risk. Saia Inc is currently generating about 0.08 per unit of volatility. If you would invest 22,741 in Saia Inc on August 31, 2024 and sell it today you would earn a total of 34,167 from holding Saia Inc or generate 150.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Saia Inc
Performance |
| Timeline |
| KNOT Offshore Partners |
| Saia Inc |
KNOT Offshore and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Saia
The main advantage of trading using opposite KNOT Offshore and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia'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 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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