Correlation Between Byline Bancorp and CaliberCos
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and CaliberCos 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 CaliberCos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and CaliberCos Class A, you can compare the effects of market volatilities on Byline Bancorp and CaliberCos 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 CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and CaliberCos.
Diversification Opportunities for Byline Bancorp and CaliberCos
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Byline and CaliberCos is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A 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 CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and CaliberCos go up and down completely randomly.
Pair Corralation between Byline Bancorp and CaliberCos
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 0.43 times more return on investment than CaliberCos. However, Byline Bancorp is 2.35 times less risky than CaliberCos. It trades about 0.18 of its potential returns per unit of risk. CaliberCos Class A is currently generating about -0.05 per unit of risk. If you would invest 2,530 in Byline Bancorp on September 5, 2024 and sell it today you would earn a total of 588.00 from holding Byline Bancorp or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. CaliberCos Class A
Performance |
| Timeline |
| Byline Bancorp |
| CaliberCos Class A |
Byline Bancorp and CaliberCos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and CaliberCos
The main advantage of trading using opposite Byline Bancorp and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, CaliberCos 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 CaliberCos will offset losses from the drop in CaliberCos' long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| CaliberCos vs. Hudson Pacific Properties | CaliberCos vs. Bassett Furniture Industries | CaliberCos vs. Apogee Enterprises | CaliberCos vs. Hafnia Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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