Correlation Between KNOT Offshore and SOUTHERN
Specify exactly 2 symbols:
By analyzing existing cross correlation between KNOT Offshore Partners and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on KNOT Offshore and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and SOUTHERN.
Diversification Opportunities for KNOT Offshore and SOUTHERN
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between KNOT and SOUTHERN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and SOUTHERN go up and down completely randomly.
Pair Corralation between KNOT Offshore and SOUTHERN
Given the investment horizon of 90 days KNOT Offshore Partners is expected to generate 2.55 times more return on investment than SOUTHERN. However, KNOT Offshore is 2.55 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.03 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.03 per unit of risk. If you would invest 489.00 in KNOT Offshore Partners on September 12, 2024 and sell it today you would earn a total of 85.00 from holding KNOT Offshore Partners or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.09% |
| Values | Daily Returns |
KNOT Offshore Partners vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| KNOT Offshore Partners |
| SOUTHERN CALIF EDISON |
KNOT Offshore and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and SOUTHERN
The main advantage of trading using opposite KNOT Offshore and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN'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 |
| SOUTHERN vs. KNOT Offshore Partners | SOUTHERN vs. Playstudios | SOUTHERN vs. Jutal Offshore Oil | SOUTHERN vs. Ainsworth Game Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |