Correlation Between Byline Bancorp and Kearny Financial
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Kearny Financial 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 Kearny Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Kearny Financial Corp, you can compare the effects of market volatilities on Byline Bancorp and Kearny Financial 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 Kearny Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Kearny Financial.
Diversification Opportunities for Byline Bancorp and Kearny Financial
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Kearny is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Kearny Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kearny Financial 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 Kearny Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kearny Financial Corp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Kearny Financial go up and down completely randomly.
Pair Corralation between Byline Bancorp and Kearny Financial
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.17 times less return on investment than Kearny Financial. But when comparing it to its historical volatility, Byline Bancorp is 1.07 times less risky than Kearny Financial. It trades about 0.17 of its potential returns per unit of risk. Kearny Financial Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Kearny Financial Corp on August 29, 2024 and sell it today you would earn a total of 119.00 from holding Kearny Financial Corp or generate 17.3% 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. Kearny Financial Corp
Performance |
| Timeline |
| Byline Bancorp |
| Kearny Financial Corp |
Byline Bancorp and Kearny Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Kearny Financial
The main advantage of trading using opposite Byline Bancorp and Kearny Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Kearny Financial 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 Kearny Financial will offset losses from the drop in Kearny Financial's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Kearny Financial vs. National Bank Holdings | Kearny Financial vs. Community West Bancshares | Kearny Financial vs. Financial Institutions | Kearny Financial vs. Heritage Financial |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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