Correlation Between TYSNES SPAREBANK and CITIC
Can any of the company-specific risk be diversified away by investing in both TYSNES SPAREBANK and CITIC 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 CITIC 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 CITIC LTD ADR5, you can compare the effects of market volatilities on TYSNES SPAREBANK and CITIC 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 CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of TYSNES SPAREBANK and CITIC.
Diversification Opportunities for TYSNES SPAREBANK and CITIC
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TYSNES and CITIC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding TYSNES SPAREBANK NK and CITIC LTD ADR5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC LTD ADR5 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 CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC LTD ADR5 has no effect on the direction of TYSNES SPAREBANK i.e., TYSNES SPAREBANK and CITIC go up and down completely randomly.
Pair Corralation between TYSNES SPAREBANK and CITIC
Assuming the 90 days horizon TYSNES SPAREBANK is expected to generate 1.15 times less return on investment than CITIC. But when comparing it to its historical volatility, TYSNES SPAREBANK NK is 1.23 times less risky than CITIC. It trades about 0.27 of its potential returns per unit of risk. CITIC LTD ADR5 is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 486.00 in CITIC LTD ADR5 on April 24, 2025 and sell it today you would earn a total of 109.00 from holding CITIC LTD ADR5 or generate 22.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
TYSNES SPAREBANK NK vs. CITIC LTD ADR5
Performance |
Timeline |
TYSNES SPAREBANK |
CITIC LTD ADR5 |
TYSNES SPAREBANK and CITIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TYSNES SPAREBANK and CITIC
The main advantage of trading using opposite TYSNES SPAREBANK and CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TYSNES SPAREBANK position performs unexpectedly, CITIC 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 CITIC will offset losses from the drop in CITIC's long position.TYSNES SPAREBANK vs. NISSAN CHEMICAL IND | TYSNES SPAREBANK vs. PTT Global Chemical | TYSNES SPAREBANK vs. DENTSPLY SIRONA | TYSNES SPAREBANK vs. AIR PRODCHEMICALS |
CITIC vs. Meli Hotels International | CITIC vs. Pebblebrook Hotel Trust | CITIC vs. TYSNES SPAREBANK NK | CITIC vs. Synovus Financial Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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