Correlation Between Greystone Housing and Byline Bancorp

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

By analyzing existing cross correlation between Greystone Housing Impact and Byline Bancorp, you can compare the effects of market volatilities on Greystone Housing 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 Greystone Housing with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Housing and Byline Bancorp.

Diversification Opportunities for Greystone Housing and Byline Bancorp

-0.19

Correlation Coefficient

Greystone Housing  Byline Bancorp

Good diversification

The 3 months correlation between Greystone and Byline is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Housing Impact and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and Greystone Housing 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 Greystone Housing Impact 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 Greystone Housing i.e., Greystone Housing and Byline Bancorp go up and down completely randomly.

Pair Corralation between Greystone Housing and Byline Bancorp

Considering the 90-day investment horizon Greystone Housing Impact is expected to generate 1.4 times more return on investment than Byline Bancorp. However, Greystone Housing is 1.4 times more volatile than Byline Bancorp. It trades about 0.09 of its potential returns per unit of risk. Byline Bancorp is currently generating about -0.1 per unit of risk. If you would invest  1,136  in Greystone Housing Impact on December 2, 2024 and sell it today you would earn a total of  119.00  from holding Greystone Housing Impact or generate 10.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Greystone Housing Impact  vs.  Byline Bancorp

Greystone Housing Impact

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greystone Housing Impact are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical indicators, Greystone Housing may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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.

Pair Trading with Greystone Housing and Byline Bancorp

The main advantage of trading using opposite Greystone Housing and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Housing 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.

The idea behind Greystone Housing Impact and Byline Bancorp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.