Correlation Between Byline Bancorp and Atlantic Union
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Atlantic Union 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 Atlantic Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Atlantic Union Bankshares, you can compare the effects of market volatilities on Byline Bancorp and Atlantic Union 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 Atlantic Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Atlantic Union.
Diversification Opportunities for Byline Bancorp and Atlantic Union
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Atlantic is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Atlantic Union Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Union Bankshares 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 Atlantic Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Union Bankshares has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Atlantic Union go up and down completely randomly.
Pair Corralation between Byline Bancorp and Atlantic Union
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.2 times more return on investment than Atlantic Union. However, Byline Bancorp is 1.2 times more volatile than Atlantic Union Bankshares. It trades about 0.19 of its potential returns per unit of risk. Atlantic Union Bankshares is currently generating about 0.22 per unit of risk. If you would invest 2,775 in Byline Bancorp on August 28, 2024 and sell it today you would earn a total of 429.00 from holding Byline Bancorp or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. Atlantic Union Bankshares
Performance |
| Timeline |
| Byline Bancorp |
| Atlantic Union Bankshares |
Byline Bancorp and Atlantic Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Atlantic Union
The main advantage of trading using opposite Byline Bancorp and Atlantic Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Atlantic Union 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 Atlantic Union will offset losses from the drop in Atlantic Union's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Atlantic Union vs. Fifth Third Bancorp | Atlantic Union vs. Zions Bancorporation | Atlantic Union vs. Huntington Bancshares Incorporated | Atlantic Union vs. Comerica |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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