Correlation Between TYSNES SPAREBANK and Planet Fitness

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

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

Diversification Opportunities for TYSNES SPAREBANK and Planet Fitness

0.73

Correlation Coefficient

TYSNES SPAREBANK  Planet Fitness

Poor diversification

The 3 months correlation between TYSNES and Planet is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding TYSNES SPAREBANK NK and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness 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 NK are associated (or correlated) with Planet Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Fitness has no effect on the direction of TYSNES SPAREBANK i.e., TYSNES SPAREBANK and Planet Fitness go up and down completely randomly.

Pair Corralation between TYSNES SPAREBANK and Planet Fitness

Assuming the 90 days horizon TYSNES SPAREBANK NK is expected to generate 0.57 times more return on investment than Planet Fitness. However, TYSNES SPAREBANK NK is 1.75 times less risky than Planet Fitness. It trades about 0.27 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.1 per unit of risk. If you would invest  1,016  in TYSNES SPAREBANK NK on April 24, 2025 and sell it today you would earn a total of  197.00  from holding TYSNES SPAREBANK NK or generate 19.39% return on investment over 90 days.

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

TYSNES SPAREBANK NK  vs.  Planet Fitness

TYSNES SPAREBANK

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TYSNES SPAREBANK NK are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TYSNES SPAREBANK reported solid returns over the last few months and may actually be approaching a breakup point.

Planet Fitness

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Fitness are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Planet Fitness may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TYSNES SPAREBANK and Planet Fitness

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

The idea behind TYSNES SPAREBANK NK and Planet Fitness 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..