Correlation Between Byline Bancorp and BNY Mellon
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and BNY Mellon 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 BNY Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and BNY Mellon Strategic, you can compare the effects of market volatilities on Byline Bancorp and BNY Mellon 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 BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and BNY Mellon.
Diversification Opportunities for Byline Bancorp and BNY Mellon
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Byline and BNY is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and BNY Mellon Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon Strategic 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 BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon Strategic has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and BNY Mellon go up and down completely randomly.
Pair Corralation between Byline Bancorp and BNY Mellon
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 5.99 times more return on investment than BNY Mellon. However, Byline Bancorp is 5.99 times more volatile than BNY Mellon Strategic. It trades about 0.21 of its potential returns per unit of risk. BNY Mellon Strategic is currently generating about 0.21 per unit of risk. If you would invest 2,643 in Byline Bancorp on September 5, 2024 and sell it today you would earn a total of 475.00 from holding Byline Bancorp or generate 17.97% 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. BNY Mellon Strategic
Performance |
| Timeline |
| Byline Bancorp |
| BNY Mellon Strategic |
Byline Bancorp and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and BNY Mellon
The main advantage of trading using opposite Byline Bancorp and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| BNY Mellon vs. Blackrock Muniholdings Closed | BNY Mellon vs. DTF Tax Free | BNY Mellon vs. John Hancock Income | BNY Mellon vs. MFS Investment Grade |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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