Correlation Between Byline Bancorp and Kairous Acquisition
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Kairous Acquisition 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 Kairous Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Kairous Acquisition Corp, you can compare the effects of market volatilities on Byline Bancorp and Kairous Acquisition 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 Kairous Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Kairous Acquisition.
Diversification Opportunities for Byline Bancorp and Kairous Acquisition
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Byline and Kairous is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Kairous Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kairous Acquisition 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 Kairous Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kairous Acquisition Corp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Kairous Acquisition go up and down completely randomly.
Pair Corralation between Byline Bancorp and Kairous Acquisition
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.41 times more return on investment than Kairous Acquisition. However, Byline Bancorp is 1.41 times more volatile than Kairous Acquisition Corp. It trades about 0.12 of its potential returns per unit of risk. Kairous Acquisition Corp is currently generating about 0.02 per unit of risk. If you would invest 2,269 in Byline Bancorp on September 1, 2024 and sell it today you would earn a total of 873.00 from holding Byline Bancorp or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. Kairous Acquisition Corp
Performance |
| Timeline |
| Byline Bancorp |
| Kairous Acquisition Corp |
Byline Bancorp and Kairous Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Kairous Acquisition
The main advantage of trading using opposite Byline Bancorp and Kairous Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Kairous Acquisition 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 Kairous Acquisition will offset losses from the drop in Kairous Acquisition's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Kairous Acquisition vs. Visa Class A | Kairous Acquisition vs. Diamond Hill Investment | Kairous Acquisition vs. Distoken Acquisition | Kairous Acquisition vs. Associated Capital Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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