Correlation Between KNOT Offshore and Fiserv,

Can any of the company-specific risk be diversified away by investing in both KNOT Offshore and Fiserv, 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 KNOT Offshore and Fiserv, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KNOT Offshore Partners and Fiserv,, you can compare the effects of market volatilities on KNOT Offshore and Fiserv, 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 KNOT Offshore with a short position of Fiserv,. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Fiserv,.

Diversification Opportunities for KNOT Offshore and Fiserv,

-0.39

Correlation Coefficient

KNOT Offshore  Fiserv,

Very good diversification

The 3 months correlation between KNOT and Fiserv, is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Fiserv, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv, and KNOT Offshore 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 KNOT Offshore Partners are associated (or correlated) with Fiserv,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv, has no effect on the direction of KNOT Offshore i.e., KNOT Offshore and Fiserv, go up and down completely randomly.

Pair Corralation between KNOT Offshore and Fiserv,

Given the investment horizon of 90 days KNOT Offshore is expected to generate 1.38 times less return on investment than Fiserv,. In addition to that, KNOT Offshore is 1.25 times more volatile than Fiserv,. It trades about 0.05 of its total potential returns per unit of risk. Fiserv, is currently generating about 0.08 per unit of volatility. If you would invest  20,226  in Fiserv, on December 19, 2024 and sell it today you would earn a total of  1,468  from holding Fiserv, or generate 7.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KNOT Offshore Partners  vs.  Fiserv,

KNOT Offshore Partners

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KNOT Offshore Partners are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, KNOT Offshore is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Fiserv,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fiserv, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Fiserv, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with KNOT Offshore and Fiserv,

The main advantage of trading using opposite KNOT Offshore and Fiserv, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore position performs unexpectedly, Fiserv, 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 Fiserv, will offset losses from the drop in Fiserv,'s long position.

The idea behind KNOT Offshore Partners and Fiserv, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.