Correlation Between Postal Savings and TYSNES SPAREBANK

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

By analyzing existing cross correlation between Postal Savings Bank and TYSNES SPAREBANK NK, you can compare the effects of market volatilities on Postal Savings and TYSNES SPAREBANK 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 Postal Savings with a short position of TYSNES SPAREBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and TYSNES SPAREBANK.

Diversification Opportunities for Postal Savings and TYSNES SPAREBANK

0.36

Correlation Coefficient

Postal Savings  TYSNES SPAREBANK

Weak diversification

The 3 months correlation between Postal and TYSNES is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and TYSNES SPAREBANK NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TYSNES SPAREBANK and Postal Savings 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 Postal Savings Bank are associated (or correlated) with TYSNES SPAREBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TYSNES SPAREBANK has no effect on the direction of Postal Savings i.e., Postal Savings and TYSNES SPAREBANK go up and down completely randomly.

Pair Corralation between Postal Savings and TYSNES SPAREBANK

Assuming the 90 days horizon Postal Savings is expected to generate 1.04 times less return on investment than TYSNES SPAREBANK. In addition to that, Postal Savings is 1.05 times more volatile than TYSNES SPAREBANK NK. It trades about 0.09 of its total potential returns per unit of risk. TYSNES SPAREBANK NK is currently generating about 0.1 per unit of volatility. If you would invest  956.00  in TYSNES SPAREBANK NK on December 28, 2024 and sell it today you would earn a total of  92.00  from holding TYSNES SPAREBANK NK or generate 9.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Postal Savings Bank  vs.  TYSNES SPAREBANK NK

Postal Savings Bank

Risk-Adjusted Performance

Modest

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

TYSNES SPAREBANK

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TYSNES SPAREBANK NK are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TYSNES SPAREBANK may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Postal Savings and TYSNES SPAREBANK

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

The idea behind Postal Savings Bank and TYSNES SPAREBANK NK 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.