Correlation Between KNOT Offshore and Upper Street
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Upper Street 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 Upper Street 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 Upper Street Marketing, you can compare the effects of market volatilities on KNOT Offshore and Upper Street 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 Upper Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Upper Street.
Diversification Opportunities for KNOT Offshore and Upper Street
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNOT and Upper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Upper Street Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upper Street Marketing 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 Upper Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upper Street Marketing has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Upper Street go up and down completely randomly.
Pair Corralation between KNOT Offshore and Upper Street
If you would invest 0.01 in Upper Street Marketing on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Upper Street Marketing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Upper Street Marketing
Performance |
| Timeline |
| KNOT Offshore Partners |
| Upper Street Marketing |
KNOT Offshore and Upper Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Upper Street
The main advantage of trading using opposite KNOT Offshore and Upper Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Upper Street 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 Upper Street will offset losses from the drop in Upper Street'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 |
| Upper Street vs. Brainsway | Upper Street vs. Venus Concept | Upper Street vs. Tactile Systems Technology | Upper Street vs. Icecure Medical |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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