Correlation Between KNOT Offshore and SIMON
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By analyzing existing cross correlation between KNOT Offshore Partners and SIMON PPTY GROUP, you can compare the effects of market volatilities on KNOT Offshore and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and SIMON.
Diversification Opportunities for KNOT Offshore and SIMON
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KNOT and SIMON is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and SIMON go up and down completely randomly.
Pair Corralation between KNOT Offshore and SIMON
Given the investment horizon of 90 days KNOT Offshore Partners is expected to under-perform the SIMON. In addition to that, KNOT Offshore is 5.62 times more volatile than SIMON PPTY GROUP. It trades about -0.01 of its total potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.01 per unit of volatility. If you would invest 9,398 in SIMON PPTY GROUP on September 5, 2024 and sell it today you would earn a total of 133.00 from holding SIMON PPTY GROUP or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
KNOT Offshore Partners vs. SIMON PPTY GROUP
Performance |
| Timeline |
| KNOT Offshore Partners |
| SIMON PPTY GROUP |
KNOT Offshore and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and SIMON
The main advantage of trading using opposite KNOT Offshore and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON'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 |
| SIMON vs. Palomar Holdings | SIMON vs. Inflection Point Acquisition | SIMON vs. KNOT Offshore Partners | SIMON vs. Employers Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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