Correlation Between Tysnes Sparebank and SoftwareOne Holding
Can any of the company-specific risk be diversified away by investing in both Tysnes Sparebank and SoftwareOne Holding 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 Tysnes Sparebank and SoftwareOne Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tysnes Sparebank and SoftwareOne Holding, you can compare the effects of market volatilities on Tysnes Sparebank and SoftwareOne Holding 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 Tysnes Sparebank with a short position of SoftwareOne Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tysnes Sparebank and SoftwareOne Holding.
Diversification Opportunities for Tysnes Sparebank and SoftwareOne Holding
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tysnes and SoftwareOne is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tysnes Sparebank and SoftwareOne Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftwareOne Holding and Tysnes 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 Tysnes Sparebank are associated (or correlated) with SoftwareOne Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftwareOne Holding has no effect on the direction of Tysnes Sparebank i.e., Tysnes Sparebank and SoftwareOne Holding go up and down completely randomly.
Pair Corralation between Tysnes Sparebank and SoftwareOne Holding
Assuming the 90 days trading horizon Tysnes Sparebank is expected to generate 0.56 times more return on investment than SoftwareOne Holding. However, Tysnes Sparebank is 1.79 times less risky than SoftwareOne Holding. It trades about 0.09 of its potential returns per unit of risk. SoftwareOne Holding is currently generating about -0.03 per unit of risk. If you would invest 13,900 in Tysnes Sparebank on June 4, 2025 and sell it today you would earn a total of 760.00 from holding Tysnes Sparebank or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tysnes Sparebank vs. SoftwareOne Holding
Performance |
| Timeline |
| Tysnes Sparebank |
| SoftwareOne Holding |
Tysnes Sparebank and SoftwareOne Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tysnes Sparebank and SoftwareOne Holding
The main advantage of trading using opposite Tysnes Sparebank and SoftwareOne Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tysnes Sparebank position performs unexpectedly, SoftwareOne Holding 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 SoftwareOne Holding will offset losses from the drop in SoftwareOne Holding's long position.| Tysnes Sparebank vs. Morrow Bank ASA | Tysnes Sparebank vs. Nordic Mining ASA | Tysnes Sparebank vs. Jaeren Sparebank | Tysnes Sparebank vs. Aasen Sparebank |
| SoftwareOne Holding vs. Equinor ASA | SoftwareOne Holding vs. DnB ASA | SoftwareOne Holding vs. Aker BP ASA | SoftwareOne Holding vs. Telenor ASA |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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