Correlation Between Byline Bancorp and PWUP Old

Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and PWUP Old 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 PWUP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Byline Bancorp and PWUP Old, you can compare the effects of market volatilities on Byline Bancorp and PWUP Old 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 PWUP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and PWUP Old.

Diversification Opportunities for Byline Bancorp and PWUP Old

0.07

Correlation Coefficient

Byline Bancorp  PWUP Old

Significant diversification

The 3 months correlation between Byline and PWUP is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and PWUP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PWUP Old 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 PWUP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PWUP Old has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and PWUP Old go up and down completely randomly.

Pair Corralation between Byline Bancorp and PWUP Old

Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 0.18 times more return on investment than PWUP Old. However, Byline Bancorp is 5.66 times less risky than PWUP Old. It trades about -0.08 of its potential returns per unit of risk. PWUP Old is currently generating about -0.04 per unit of risk. If you would invest  2,886  in Byline Bancorp on December 28, 2024 and sell it today you would lose (210.00) from holding Byline Bancorp or give up 7.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	58.33%
Values	Daily Returns

Byline Bancorp  vs.  PWUP Old

Byline Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Byline Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

PWUP Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days PWUP Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Byline Bancorp and PWUP Old

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

The idea behind Byline Bancorp and PWUP Old 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .