Correlation Between Better Home and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both Better Home and Byline Bancorp 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 Better Home and Byline Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Better Home Finance and Byline Bancorp, you can compare the effects of market volatilities on Better Home and Byline Bancorp 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 Better Home with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Better Home and Byline Bancorp.
Diversification Opportunities for Better Home and Byline Bancorp
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Better and Byline is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Better Home Finance and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and Better Home 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 Better Home Finance are associated (or correlated) with Byline Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byline Bancorp has no effect on the direction of Better Home i.e., Better Home and Byline Bancorp go up and down completely randomly.
Pair Corralation between Better Home and Byline Bancorp
Assuming the 90 days horizon Better Home Finance is expected to generate 14.54 times more return on investment than Byline Bancorp. However, Better Home is 14.54 times more volatile than Byline Bancorp. It trades about 0.02 of its potential returns per unit of risk. Byline Bancorp is currently generating about -0.1 per unit of risk. If you would invest 11.00 in Better Home Finance on December 2, 2024 and sell it today you would lose (5.02) from holding Better Home Finance or give up 45.64% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 54.1% |
Values | Daily Returns |
Better Home Finance vs. Byline Bancorp
Performance |
Timeline |
Better Home Finance |
Byline Bancorp |
Better Home and Byline Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Better Home and Byline Bancorp
The main advantage of trading using opposite Better Home and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Better Home position performs unexpectedly, Byline Bancorp 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 Byline Bancorp will offset losses from the drop in Byline Bancorp's long position.Better Home vs. Vasta Platform | Better Home vs. Adtalem Global Education | Better Home vs. Shimmick Common | Better Home vs. Zane Interactive Publishing |
Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |