Correlation Between CONSUMERS and KNOT Offshore
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By analyzing existing cross correlation between CONSUMERS ENERGY 395 and KNOT Offshore Partners, you can compare the effects of market volatilities on CONSUMERS and KNOT Offshore 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 CONSUMERS with a short position of KNOT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSUMERS and KNOT Offshore.
Diversification Opportunities for CONSUMERS and KNOT Offshore
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CONSUMERS and KNOT is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CONSUMERS ENERGY 395 and KNOT Offshore Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KNOT Offshore Partners and CONSUMERS 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 CONSUMERS ENERGY 395 are associated (or correlated) with KNOT Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KNOT Offshore Partners has no effect on the direction of CONSUMERS i.e., CONSUMERS and KNOT Offshore go up and down completely randomly.
Pair Corralation between CONSUMERS and KNOT Offshore
Assuming the 90 days trading horizon CONSUMERS is expected to generate 4.12 times less return on investment than KNOT Offshore. But when comparing it to its historical volatility, CONSUMERS ENERGY 395 is 1.07 times less risky than KNOT Offshore. It trades about 0.01 of its potential returns per unit of risk. KNOT Offshore Partners is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 520.00 in KNOT Offshore Partners on September 2, 2024 and sell it today you would earn a total of 63.00 from holding KNOT Offshore Partners or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.04% |
| Values | Daily Returns |
CONSUMERS ENERGY 395 vs. KNOT Offshore Partners
Performance |
| Timeline |
| CONSUMERS ENERGY 5 |
| KNOT Offshore Partners |
CONSUMERS and KNOT Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSUMERS and KNOT Offshore
The main advantage of trading using opposite CONSUMERS and KNOT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSUMERS position performs unexpectedly, KNOT Offshore 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 KNOT Offshore will offset losses from the drop in KNOT Offshore's long position.| CONSUMERS vs. Keurig Dr Pepper | CONSUMERS vs. Compania Cervecerias Unidas | CONSUMERS vs. Weyco Group | CONSUMERS vs. Skechers USA |
| KNOT Offshore vs. USA Compression Partners | KNOT Offshore vs. Dynagas LNG Partners | KNOT Offshore vs. Crossamerica Partners LP | KNOT Offshore vs. Delek Logistics Partners |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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