Correlation Between KNOT Offshore and 00206RHY1
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By analyzing existing cross correlation between KNOT Offshore Partners and T 6625 15 MAY 29, you can compare the effects of market volatilities on KNOT Offshore and 00206RHY1 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 00206RHY1. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and 00206RHY1.
Diversification Opportunities for KNOT Offshore and 00206RHY1
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KNOT and 00206RHY1 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and T 6625 15 MAY 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T 6625 15 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 00206RHY1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T 6625 15 has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and 00206RHY1 go up and down completely randomly.
Pair Corralation between KNOT Offshore and 00206RHY1
Given the investment horizon of 90 days KNOT Offshore Partners is expected to under-perform the 00206RHY1. In addition to that, KNOT Offshore is 3.3 times more volatile than T 6625 15 MAY 29. It trades about -0.05 of its total potential returns per unit of risk. T 6625 15 MAY 29 is currently generating about 0.01 per unit of volatility. If you would invest 10,600 in T 6625 15 MAY 29 on September 3, 2024 and sell it today you would earn a total of 12.00 from holding T 6625 15 MAY 29 or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 37.6% |
| Values | Daily Returns |
KNOT Offshore Partners vs. T 6625 15 MAY 29
Performance |
| Timeline |
| KNOT Offshore Partners |
| T 6625 15 |
KNOT Offshore and 00206RHY1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and 00206RHY1
The main advantage of trading using opposite KNOT Offshore and 00206RHY1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, 00206RHY1 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 00206RHY1 will offset losses from the drop in 00206RHY1's long position.| KNOT Offshore vs. International Seaways | KNOT Offshore vs. Scorpio Tankers | KNOT Offshore vs. Dorian LPG | KNOT Offshore vs. Teekay Tankers |
| 00206RHY1 vs. One Gas | 00206RHY1 vs. Sable Offshore Corp | 00206RHY1 vs. Archrock | 00206RHY1 vs. KNOT Offshore 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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