Correlation Between KNOT Offshore and 872540AQ2
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By analyzing existing cross correlation between KNOT Offshore Partners and TJX INC NEW, you can compare the effects of market volatilities on KNOT Offshore and 872540AQ2 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 872540AQ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and 872540AQ2.
Diversification Opportunities for KNOT Offshore and 872540AQ2
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KNOT and 872540AQ2 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and TJX INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJX INC NEW 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 872540AQ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJX INC NEW has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and 872540AQ2 go up and down completely randomly.
Pair Corralation between KNOT Offshore and 872540AQ2
Given the investment horizon of 90 days KNOT Offshore Partners is expected to under-perform the 872540AQ2. In addition to that, KNOT Offshore is 7.92 times more volatile than TJX INC NEW. It trades about -0.05 of its total potential returns per unit of risk. TJX INC NEW is currently generating about -0.01 per unit of volatility. If you would invest 9,422 in TJX INC NEW on September 2, 2024 and sell it today you would lose (46.00) from holding TJX INC NEW or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
KNOT Offshore Partners vs. TJX INC NEW
Performance |
| Timeline |
| KNOT Offshore Partners |
| TJX INC NEW |
KNOT Offshore and 872540AQ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and 872540AQ2
The main advantage of trading using opposite KNOT Offshore and 872540AQ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, 872540AQ2 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 872540AQ2 will offset losses from the drop in 872540AQ2'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 |
| 872540AQ2 vs. AEP TEX INC | 872540AQ2 vs. US BANK NATIONAL | 872540AQ2 vs. Bank of America | 872540AQ2 vs. GE Aerospace |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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