Correlation Between Byline Bancorp and International General
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and International General 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 International General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and International General Insurance, you can compare the effects of market volatilities on Byline Bancorp and International General 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 International General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and International General.
Diversification Opportunities for Byline Bancorp and International General
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Byline and International is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and International General Insuranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International General 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 International General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International General has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and International General go up and down completely randomly.
Pair Corralation between Byline Bancorp and International General
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 2.75 times less return on investment than International General. In addition to that, Byline Bancorp is 1.06 times more volatile than International General Insurance. It trades about 0.05 of its total potential returns per unit of risk. International General Insurance is currently generating about 0.14 per unit of volatility. If you would invest 742.00 in International General Insurance on August 27, 2024 and sell it today you would earn a total of 1,856 from holding International General Insurance or generate 250.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. International General Insuranc
Performance |
| Timeline |
| Byline Bancorp |
| International General |
Byline Bancorp and International General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and International General
The main advantage of trading using opposite Byline Bancorp and International General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, International General 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 International General will offset losses from the drop in International General's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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