Correlation Between TYSNES SPAREBANK and Compugroup Medical

Can any of the company-specific risk be diversified away by investing in both TYSNES SPAREBANK and Compugroup Medical 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 Compugroup Medical 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 Compugroup Medical SE, you can compare the effects of market volatilities on TYSNES SPAREBANK and Compugroup Medical 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 Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TYSNES SPAREBANK and Compugroup Medical.

Diversification Opportunities for TYSNES SPAREBANK and Compugroup Medical

0.71

Correlation Coefficient

TYSNES SPAREBANK  Compugroup Medical

Poor diversification

The 3 months correlation between TYSNES and Compugroup is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding TYSNES SPAREBANK NK and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical 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 Compugroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugroup Medical has no effect on the direction of TYSNES SPAREBANK i.e., TYSNES SPAREBANK and Compugroup Medical go up and down completely randomly.

Pair Corralation between TYSNES SPAREBANK and Compugroup Medical

Assuming the 90 days horizon TYSNES SPAREBANK NK is expected to generate 1.27 times more return on investment than Compugroup Medical. However, TYSNES SPAREBANK is 1.27 times more volatile than Compugroup Medical SE. It trades about 0.21 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.15 per unit of risk. If you would invest  1,039  in TYSNES SPAREBANK NK on April 23, 2025 and sell it today you would earn a total of  163.00  from holding TYSNES SPAREBANK NK or generate 15.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	73.02%
Values	Daily Returns

TYSNES SPAREBANK NK  vs.  Compugroup Medical SE

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 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TYSNES SPAREBANK reported solid returns over the last few months and may actually be approaching a breakup point.

Compugroup Medical

Risk-Adjusted Performance

Good

Over the last 90 days Compugroup Medical SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Compugroup Medical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TYSNES SPAREBANK and Compugroup Medical

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

The idea behind TYSNES SPAREBANK NK and Compugroup Medical SE 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.