Correlation Between Byline Bancorp and Guild Holdings
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Guild Holdings 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 Guild Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Guild Holdings Co, you can compare the effects of market volatilities on Byline Bancorp and Guild Holdings 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 Guild Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Guild Holdings.
Diversification Opportunities for Byline Bancorp and Guild Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Byline and Guild is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Guild Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Holdings 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 Guild Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Holdings has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Guild Holdings go up and down completely randomly.
Pair Corralation between Byline Bancorp and Guild Holdings
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 0.67 times more return on investment than Guild Holdings. However, Byline Bancorp is 1.5 times less risky than Guild Holdings. It trades about 0.08 of its potential returns per unit of risk. Guild Holdings Co is currently generating about 0.04 per unit of risk. If you would invest 1,901 in Byline Bancorp on August 31, 2024 and sell it today you would earn a total of 1,241 from holding Byline Bancorp or generate 65.28% 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. Guild Holdings Co
Performance |
| Timeline |
| Byline Bancorp |
| Guild Holdings |
Byline Bancorp and Guild Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Guild Holdings
The main advantage of trading using opposite Byline Bancorp and Guild Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Guild Holdings 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 Guild Holdings will offset losses from the drop in Guild Holdings' long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Guild Holdings vs. CNFinance Holdings | Guild Holdings vs. Security National Financial | Guild Holdings vs. Encore Capital Group | Guild Holdings vs. UWM Holdings Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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