Correlation Between Byline Bancorp and Peoples Bancorp
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Peoples 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 Byline Bancorp and Peoples Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Peoples Bancorp of, you can compare the effects of market volatilities on Byline Bancorp and Peoples 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 Byline Bancorp with a short position of Peoples Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Peoples Bancorp.
Diversification Opportunities for Byline Bancorp and Peoples Bancorp
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Peoples is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Peoples Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Bancorp and Byline Bancorp 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 Byline Bancorp are associated (or correlated) with Peoples Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Bancorp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Peoples Bancorp go up and down completely randomly.
Pair Corralation between Byline Bancorp and Peoples Bancorp
Allowing for the 90-day total investment horizon Byline Bancorp is expected to under-perform the Peoples Bancorp. In addition to that, Byline Bancorp is 1.36 times more volatile than Peoples Bancorp of. It trades about -0.31 of its total potential returns per unit of risk. Peoples Bancorp of is currently generating about 0.07 per unit of volatility. If you would invest 3,124 in Peoples Bancorp of on September 24, 2024 and sell it today you would earn a total of 45.00 from holding Peoples Bancorp of or generate 1.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Byline Bancorp vs. Peoples Bancorp of
Performance |
Timeline |
Byline Bancorp |
Peoples Bancorp |
Byline Bancorp and Peoples Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Byline Bancorp and Peoples Bancorp
The main advantage of trading using opposite Byline Bancorp and Peoples Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Peoples 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 Peoples Bancorp will offset losses from the drop in Peoples Bancorp's long position.Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. First Northwest Bancorp | Byline Bancorp vs. HomeTrust Bancshares | Byline Bancorp vs. Lake Shore Bancorp |
Peoples Bancorp vs. Home Federal Bancorp | Peoples Bancorp vs. First Northwest Bancorp | Peoples Bancorp vs. HomeTrust Bancshares | Peoples Bancorp vs. Lake Shore Bancorp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |