Correlation Between Via Renewables and Knife River
Can any of the company-specific risk be diversified away by investing in both Via Renewables and Knife River at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Via Renewables and Knife River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Renewables and Knife River, you can compare the effects of market volatilities on Via Renewables and Knife River 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 Via Renewables with a short position of Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Renewables and Knife River.
Diversification Opportunities for Via Renewables and Knife River
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Via and Knife is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River and Via Renewables 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 Via Renewables are associated (or correlated) with Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Via Renewables i.e., Via Renewables and Knife River go up and down completely randomly.
Pair Corralation between Via Renewables and Knife River
Assuming the 90 days horizon Via Renewables is expected to generate 3.37 times less return on investment than Knife River. In addition to that, Via Renewables is 1.3 times more volatile than Knife River. It trades about 0.03 of its total potential returns per unit of risk. Knife River is currently generating about 0.13 per unit of volatility. If you would invest 3,551 in Knife River on August 24, 2024 and sell it today you would earn a total of 6,501 from holding Knife River or generate 183.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.81% |
| Values | Daily Returns |
Via Renewables vs. Knife River
Performance |
| Timeline |
| Via Renewables |
| Knife River |
Via Renewables and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Renewables and Knife River
The main advantage of trading using opposite Via Renewables and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Renewables position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
| Knife River vs. MGIC Investment Corp | Knife River vs. Western Asset Investment | Knife River vs. Guangdong Investment Limited | Knife River vs. Vera Bradley |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |