Correlation Between Byline Bancorp and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Hancock Whitney 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 Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Hancock Whitney Corp, you can compare the effects of market volatilities on Byline Bancorp and Hancock Whitney 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 Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Hancock Whitney.
Diversification Opportunities for Byline Bancorp and Hancock Whitney
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Hancock is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Hancock Whitney Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney Corp 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 Hancock Whitney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hancock Whitney Corp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Hancock Whitney go up and down completely randomly.
Pair Corralation between Byline Bancorp and Hancock Whitney
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.04 times more return on investment than Hancock Whitney. However, Byline Bancorp is 1.04 times more volatile than Hancock Whitney Corp. It trades about 0.17 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about 0.16 per unit of risk. If you would invest 2,757 in Byline Bancorp on August 31, 2024 and sell it today you would earn a total of 395.00 from holding Byline Bancorp or generate 14.33% 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. Hancock Whitney Corp
Performance |
| Timeline |
| Byline Bancorp |
| Hancock Whitney Corp |
Byline Bancorp and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Hancock Whitney
The main advantage of trading using opposite Byline Bancorp and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Hancock Whitney 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 Hancock Whitney will offset losses from the drop in Hancock Whitney's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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