Correlation Between Public Storage and TYSNES SPAREBANK

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

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

Diversification Opportunities for Public Storage and TYSNES SPAREBANK

-0.55

Correlation Coefficient

Public Storage  TYSNES SPAREBANK

Excellent diversification

The 3 months correlation between Public and TYSNES is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and TYSNES SPAREBANK NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TYSNES SPAREBANK and Public Storage 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 Public Storage 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 Public Storage i.e., Public Storage and TYSNES SPAREBANK go up and down completely randomly.

Pair Corralation between Public Storage and TYSNES SPAREBANK

Assuming the 90 days horizon Public Storage is expected to under-perform the TYSNES SPAREBANK. But the stock apears to be less risky and, when comparing its historical volatility, Public Storage is 1.06 times less risky than TYSNES SPAREBANK. The stock trades about -0.01 of its potential returns per unit of risk. The TYSNES SPAREBANK NK is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  956.00  in TYSNES SPAREBANK NK on December 29, 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 Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Public Storage  vs.  TYSNES SPAREBANK NK

Public Storage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Public Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Public Storage is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Public Storage and TYSNES SPAREBANK

The main advantage of trading using opposite Public Storage and TYSNES SPAREBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage 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 Public Storage 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.