Correlation Between Byline Bancorp and Five Star
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Five Star 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 Five Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Five Star Bancorp, you can compare the effects of market volatilities on Byline Bancorp and Five Star 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 Five Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Five Star.
Diversification Opportunities for Byline Bancorp and Five Star
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Five is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Five Star Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five Star Bancorp 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 Five Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five Star Bancorp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Five Star go up and down completely randomly.
Pair Corralation between Byline Bancorp and Five Star
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.36 times more return on investment than Five Star. However, Byline Bancorp is 1.36 times more volatile than Five Star Bancorp. It trades about 0.23 of its potential returns per unit of risk. Five Star Bancorp is currently generating about 0.17 per unit of risk. If you would invest 2,645 in Byline Bancorp on August 25, 2024 and sell it today you would earn a total of 549.00 from holding Byline Bancorp or generate 20.76% 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. Five Star Bancorp
Performance |
| Timeline |
| Byline Bancorp |
| Five Star Bancorp |
Byline Bancorp and Five Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Five Star
The main advantage of trading using opposite Byline Bancorp and Five Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Five Star 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 Five Star will offset losses from the drop in Five Star's long position.| Byline Bancorp vs. KeyCorp | Byline Bancorp vs. Fifth Third Bancorp | Byline Bancorp vs. Zions Bancorporation | Byline Bancorp vs. Huntington Bancshares Incorporated |
| Five Star vs. Community West Bancshares | Five Star vs. First Northwest Bancorp | Five Star vs. Home Federal Bancorp | Five Star vs. First Financial Northwest |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |