Correlation Between Byline Bancorp and Up Fintech

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

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

Diversification Opportunities for Byline Bancorp and Up Fintech

-0.44

Correlation Coefficient

Byline Bancorp  Up Fintech

Very good diversification

The 3 months correlation between Byline and TIGR is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding 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 Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Up Fintech go up and down completely randomly.

Pair Corralation between Byline Bancorp and Up Fintech

Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 3.24 times less return on investment than Up Fintech. But when comparing it to its historical volatility, Byline Bancorp is 2.46 times less risky than Up Fintech. It trades about 0.03 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  387.00  in Up Fintech Holding on October 9, 2024 and sell it today you would earn a total of  276.00  from holding Up Fintech Holding or generate 71.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Byline Bancorp  vs.  Up Fintech Holding

Byline Bancorp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Byline Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Byline Bancorp showed solid returns over the last few months and may actually be approaching a breakup point.

Up Fintech Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Up Fintech Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Byline Bancorp and Up Fintech

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

The idea behind Byline Bancorp and Up Fintech Holding 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.