Correlation Between KNOT Offshore and KILROY
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By analyzing existing cross correlation between KNOT Offshore Partners and KILROY RLTY L, you can compare the effects of market volatilities on KNOT Offshore and KILROY 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 KILROY. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and KILROY.
Diversification Opportunities for KNOT Offshore and KILROY
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KNOT and KILROY is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and KILROY RLTY L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KILROY RLTY L 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 KILROY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KILROY RLTY L has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and KILROY go up and down completely randomly.
Pair Corralation between KNOT Offshore and KILROY
Given the investment horizon of 90 days KNOT Offshore Partners is expected to generate 1.99 times more return on investment than KILROY. However, KNOT Offshore is 1.99 times more volatile than KILROY RLTY L. It trades about 0.02 of its potential returns per unit of risk. KILROY RLTY L is currently generating about -0.21 per unit of risk. If you would invest 587.00 in KNOT Offshore Partners on September 4, 2024 and sell it today you would earn a total of 2.00 from holding KNOT Offshore Partners or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
KNOT Offshore Partners vs. KILROY RLTY L
Performance |
| Timeline |
| KNOT Offshore Partners |
| KILROY RLTY L |
KNOT Offshore and KILROY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and KILROY
The main advantage of trading using opposite KNOT Offshore and KILROY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, KILROY 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 KILROY will offset losses from the drop in KILROY'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 |
| KILROY vs. KNOT Offshore Partners | KILROY vs. United Parks Resorts | KILROY vs. Solstad Offshore ASA | KILROY vs. Arrow Electronics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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