Correlation Between Byline Bancorp and Ameris Bancorp
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Ameris 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 Ameris 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 Ameris Bancorp, you can compare the effects of market volatilities on Byline Bancorp and Ameris 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 Ameris Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Ameris Bancorp.
Diversification Opportunities for Byline Bancorp and Ameris Bancorp
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Byline and Ameris is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Ameris Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameris 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 Ameris Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameris Bancorp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Ameris Bancorp go up and down completely randomly.
Pair Corralation between Byline Bancorp and Ameris Bancorp
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.12 times more return on investment than Ameris Bancorp. However, Byline Bancorp is 1.12 times more volatile than Ameris Bancorp. It trades about 0.08 of its potential returns per unit of risk. Ameris Bancorp is currently generating about 0.05 per unit of risk. If you would invest 2,666 in Byline Bancorp on November 1, 2024 and sell it today you would earn a total of 289.00 from holding Byline Bancorp or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. Ameris Bancorp
Performance |
| Timeline |
| Byline Bancorp |
| Ameris Bancorp |
Byline Bancorp and Ameris Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Ameris Bancorp
The main advantage of trading using opposite Byline Bancorp and Ameris Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Ameris 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 Ameris Bancorp will offset losses from the drop in Ameris Bancorp's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Ameris Bancorp vs. Kearny Financial Corp | Ameris Bancorp vs. Bankwell Financial Group | Ameris Bancorp vs. Business First Bancshares | Ameris Bancorp vs. Home Federal 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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