Correlation Between Byline Bancorp and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Eaton Vance Municipal, you can compare the effects of market volatilities on Byline Bancorp and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Eaton Vance.
Diversification Opportunities for Byline Bancorp and Eaton Vance
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Byline and Eaton is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Municipal has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Eaton Vance go up and down completely randomly.
Pair Corralation between Byline Bancorp and Eaton Vance
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 5.07 times more return on investment than Eaton Vance. However, Byline Bancorp is 5.07 times more volatile than Eaton Vance Municipal. It trades about 0.21 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about 0.19 per unit of risk. If you would invest 2,682 in Byline Bancorp on September 1, 2024 and sell it today you would earn a total of 460.00 from holding Byline Bancorp or generate 17.15% 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. Eaton Vance Municipal
Performance |
| Timeline |
| Byline Bancorp |
| Eaton Vance Municipal |
Byline Bancorp and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Eaton Vance
The main advantage of trading using opposite Byline Bancorp and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Eaton Vance vs. Munivest Fund | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniholdings Closed |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |