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
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greystone and Byline is -0.29. 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 1.44 times more return on investment than Byline Bancorp. However, Greystone Housing is 1.44 times more volatile than Byline Bancorp. It trades about 0.17 of its potential returns per unit of risk. Byline Bancorp is currently generating about -0.08 per unit of risk. If you would invest 1,037 in Greystone Housing Impact on December 28, 2024 and sell it today you would earn a total of 226.00 from holding Greystone Housing Impact or generate 21.79% 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
Performance |
Timeline |
Greystone Housing Impact |
Byline Bancorp |
Greystone Housing and Byline Bancorp Volatility Contrast
Predicted Return Density |
Returns |
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.Greystone Housing vs. Guild Holdings Co | Greystone Housing vs. Security National Financial | Greystone Housing vs. Encore Capital Group | Greystone Housing vs. PennyMac Finl Svcs |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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