Correlation Between Byline Bancorp and Bar Harbor
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Bar Harbor 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 Bar Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Bar Harbor Bankshares, you can compare the effects of market volatilities on Byline Bancorp and Bar Harbor 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 Bar Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Bar Harbor.
Diversification Opportunities for Byline Bancorp and Bar Harbor
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Bar is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Bar Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bar Harbor 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 Bar Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bar Harbor Bankshares has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Bar Harbor go up and down completely randomly.
Pair Corralation between Byline Bancorp and Bar Harbor
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 0.85 times more return on investment than Bar Harbor. However, Byline Bancorp is 1.17 times less risky than Bar Harbor. It trades about 0.08 of its potential returns per unit of risk. Bar Harbor Bankshares is currently generating about 0.06 per unit of risk. If you would invest 1,864 in Byline Bancorp on September 1, 2024 and sell it today you would earn a total of 1,278 from holding Byline Bancorp or generate 68.56% 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. Bar Harbor Bankshares
Performance |
| Timeline |
| Byline Bancorp |
| Bar Harbor Bankshares |
Byline Bancorp and Bar Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Bar Harbor
The main advantage of trading using opposite Byline Bancorp and Bar Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Bar Harbor 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 Bar Harbor will offset losses from the drop in Bar Harbor's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Bar Harbor vs. Camden National | Bar Harbor vs. Bank of Marin | Bar Harbor vs. Arrow Financial | Bar Harbor vs. Auburn National Bancorporation |
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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