Correlation Between Byline Bancorp and AMB Financial
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and AMB Financial 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 AMB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and AMB Financial Corp, you can compare the effects of market volatilities on Byline Bancorp and AMB Financial 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 AMB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and AMB Financial.
Diversification Opportunities for Byline Bancorp and AMB Financial
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Byline and AMB is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and AMB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMB Financial Corp 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 AMB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMB Financial Corp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and AMB Financial go up and down completely randomly.
Pair Corralation between Byline Bancorp and AMB Financial
If you would invest 2,312 in Byline Bancorp on September 3, 2024 and sell it today you would earn a total of 830.00 from holding Byline Bancorp or generate 35.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Byline Bancorp vs. AMB Financial Corp
Performance |
| Timeline |
| Byline Bancorp |
| AMB Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Byline Bancorp and AMB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and AMB Financial
The main advantage of trading using opposite Byline Bancorp and AMB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, AMB Financial 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 AMB Financial will offset losses from the drop in AMB Financial's long position.| Byline Bancorp vs. JPMorgan Chase Co | Byline Bancorp vs. Citigroup | Byline Bancorp vs. Wells Fargo | Byline Bancorp vs. Toronto Dominion Bank |
| AMB Financial vs. First Community | AMB Financial vs. Community West Bancshares | AMB Financial vs. First Financial Northwest | AMB Financial vs. First Northwest 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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