Correlation Between HEINZ and KNOT Offshore
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By analyzing existing cross correlation between HEINZ H J and KNOT Offshore Partners, you can compare the effects of market volatilities on HEINZ 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 HEINZ with a short position of KNOT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEINZ and KNOT Offshore.
Diversification Opportunities for HEINZ and KNOT Offshore
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HEINZ and KNOT is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding HEINZ H J 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 HEINZ 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 HEINZ H J 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 HEINZ i.e., HEINZ and KNOT Offshore go up and down completely randomly.
Pair Corralation between HEINZ and KNOT Offshore
Assuming the 90 days trading horizon HEINZ H J is expected to generate 0.5 times more return on investment than KNOT Offshore. However, HEINZ H J is 2.01 times less risky than KNOT Offshore. It trades about 0.04 of its potential returns per unit of risk. KNOT Offshore Partners is currently generating about -0.05 per unit of risk. If you would invest 10,511 in HEINZ H J on September 4, 2024 and sell it today you would earn a total of 44.00 from holding HEINZ H J or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
HEINZ H J vs. KNOT Offshore Partners
Performance |
| Timeline |
| HEINZ H J |
| KNOT Offshore Partners |
HEINZ and KNOT Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEINZ and KNOT Offshore
The main advantage of trading using opposite HEINZ and KNOT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEINZ 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.| HEINZ vs. KNOT Offshore Partners | HEINZ vs. Western Acquisition Ventures | HEINZ vs. Highway Holdings Limited | HEINZ vs. Lion One Metals |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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