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
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Postal and TYSNES is -0.59. 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 Bank is expected to generate 0.61 times more return on investment than TYSNES SPAREBANK. However, Postal Savings Bank is 1.64 times less risky than TYSNES SPAREBANK. It trades about 0.1 of its potential returns per unit of risk. TYSNES SPAREBANK NK is currently generating about 0.04 per unit of risk. If you would invest 16.00 in Postal Savings Bank on December 4, 2024 and sell it today you would earn a total of 44.00 from holding Postal Savings Bank or generate 275.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Postal Savings Bank vs. TYSNES SPAREBANK NK
Performance |
Timeline |
Postal Savings Bank |
TYSNES SPAREBANK |
Postal Savings and TYSNES SPAREBANK Volatility Contrast
Predicted Return Density |
Returns |
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.Postal Savings vs. COVIVIO HOTELS INH | Postal Savings vs. PARKEN Sport Entertainment | Postal Savings vs. Choice Hotels International | Postal Savings vs. ATRESMEDIA |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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