Correlation Between KNOT Offshore and STORE
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By analyzing existing cross correlation between KNOT Offshore Partners and STORE CAP P, you can compare the effects of market volatilities on KNOT Offshore and STORE 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 STORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and STORE.
Diversification Opportunities for KNOT Offshore and STORE
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KNOT and STORE is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and STORE CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE CAP P 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 STORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE CAP P has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and STORE go up and down completely randomly.
Pair Corralation between KNOT Offshore and STORE
Given the investment horizon of 90 days KNOT Offshore Partners is expected to generate 2.61 times more return on investment than STORE. However, KNOT Offshore is 2.61 times more volatile than STORE CAP P. It trades about 0.03 of its potential returns per unit of risk. STORE CAP P is currently generating about 0.0 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 | Weak |
| Accuracy | 74.62% |
| Values | Daily Returns |
KNOT Offshore Partners vs. STORE CAP P
Performance |
| Timeline |
| KNOT Offshore Partners |
| STORE CAP P |
KNOT Offshore and STORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and STORE
The main advantage of trading using opposite KNOT Offshore and STORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, STORE 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 STORE will offset losses from the drop in STORE'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 |
| STORE vs. Edgewell Personal Care | STORE vs. KNOT Offshore Partners | STORE vs. Vera Bradley | STORE vs. Weyco Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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