Correlation Between SpareBank and Tysnes Sparebank
Can any of the company-specific risk be diversified away by investing in both SpareBank 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 SpareBank and Tysnes Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpareBank 1 stlandet and Tysnes Sparebank, you can compare the effects of market volatilities on SpareBank 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 SpareBank with a short position of Tysnes Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpareBank and Tysnes Sparebank.
Diversification Opportunities for SpareBank and Tysnes Sparebank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SpareBank and Tysnes is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SpareBank 1 stlandet and Tysnes Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tysnes Sparebank and SpareBank 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 SpareBank 1 stlandet 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 SpareBank i.e., SpareBank and Tysnes Sparebank go up and down completely randomly.
Pair Corralation between SpareBank and Tysnes Sparebank
Assuming the 90 days trading horizon SpareBank 1 stlandet is expected to generate 1.05 times more return on investment than Tysnes Sparebank. However, SpareBank is 1.05 times more volatile than Tysnes Sparebank. It trades about 0.19 of its potential returns per unit of risk. Tysnes Sparebank is currently generating about 0.15 per unit of risk. If you would invest 16,450 in SpareBank 1 stlandet on March 28, 2025 and sell it today you would earn a total of 2,566 from holding SpareBank 1 stlandet or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SpareBank 1 stlandet vs. Tysnes Sparebank
Performance |
| Timeline |
| SpareBank 1 stlandet |
| Tysnes Sparebank |
SpareBank and Tysnes Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpareBank and Tysnes Sparebank
The main advantage of trading using opposite SpareBank and Tysnes Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpareBank 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.| SpareBank vs. Sparebank 1 SMN | SpareBank vs. Sparebank 1 Nord Norge | SpareBank vs. Sparebanken Vest | SpareBank vs. Pareto Bank ASA |
| Tysnes Sparebank vs. Polaris Media | Tysnes Sparebank vs. Nordic Mining ASA | Tysnes Sparebank vs. Jaeren Sparebank | Tysnes Sparebank vs. Sparebanken Ost |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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