Correlation Between KILROY and KNOT Offshore
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By analyzing existing cross correlation between KILROY RLTY L and KNOT Offshore Partners, you can compare the effects of market volatilities on KILROY 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 KILROY with a short position of KNOT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of KILROY and KNOT Offshore.
Diversification Opportunities for KILROY and KNOT Offshore
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KILROY and KNOT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding KILROY RLTY L 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 KILROY 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 KILROY RLTY L 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 KILROY i.e., KILROY and KNOT Offshore go up and down completely randomly.
Pair Corralation between KILROY and KNOT Offshore
Assuming the 90 days trading horizon KILROY RLTY L is expected to generate 0.79 times more return on investment than KNOT Offshore. However, KILROY RLTY L is 1.26 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 -0.23 per unit of risk. If you would invest 9,932 in KILROY RLTY L on September 12, 2024 and sell it today you would lose (92.00) from holding KILROY RLTY L or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KILROY RLTY L vs. KNOT Offshore Partners
Performance |
| Timeline |
| KILROY RLTY L |
| KNOT Offshore Partners |
KILROY and KNOT Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KILROY and KNOT Offshore
The main advantage of trading using opposite KILROY and KNOT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KILROY 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.| KILROY vs. AMCON Distributing | KILROY vs. Tyson Foods | KILROY vs. Grupo Televisa SAB | KILROY vs. Pinterest |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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