Correlation Between 194162AM5 and KNOT Offshore
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By analyzing existing cross correlation between CL 31 15 AUG 25 and KNOT Offshore Partners, you can compare the effects of market volatilities on 194162AM5 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 194162AM5 with a short position of KNOT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of 194162AM5 and KNOT Offshore.
Diversification Opportunities for 194162AM5 and KNOT Offshore
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 194162AM5 and KNOT is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CL 31 15 AUG 25 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 194162AM5 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 CL 31 15 AUG 25 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 194162AM5 i.e., 194162AM5 and KNOT Offshore go up and down completely randomly.
Pair Corralation between 194162AM5 and KNOT Offshore
Assuming the 90 days trading horizon CL 31 15 AUG 25 is expected to generate 0.16 times more return on investment than KNOT Offshore. However, CL 31 15 AUG 25 is 6.12 times less risky than KNOT Offshore. It trades about -0.11 of its potential returns per unit of risk. KNOT Offshore Partners is currently generating about -0.19 per unit of risk. If you would invest 9,928 in CL 31 15 AUG 25 on September 25, 2024 and sell it today you would lose (158.00) from holding CL 31 15 AUG 25 or give up 1.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 87.5% |
Values | Daily Returns |
CL 31 15 AUG 25 vs. KNOT Offshore Partners
Performance |
Timeline |
194162AM5 |
KNOT Offshore Partners |
194162AM5 and KNOT Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 194162AM5 and KNOT Offshore
The main advantage of trading using opposite 194162AM5 and KNOT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 194162AM5 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.194162AM5 vs. Topbuild Corp | 194162AM5 vs. CECO Environmental Corp | 194162AM5 vs. Tyson Foods | 194162AM5 vs. RBC Bearings Incorporated |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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