Correlation Between Byline Bancorp and Mid Southern
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Mid Southern 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 Mid Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Mid Southern Bancorp, you can compare the effects of market volatilities on Byline Bancorp and Mid Southern 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 Mid Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Mid Southern.
Diversification Opportunities for Byline Bancorp and Mid Southern
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Byline and Mid is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Mid Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Southern Bancorp 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 Mid Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Southern Bancorp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Mid Southern go up and down completely randomly.
Pair Corralation between Byline Bancorp and Mid Southern
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 3.9 times less return on investment than Mid Southern. But when comparing it to its historical volatility, Byline Bancorp is 1.61 times less risky than Mid Southern. It trades about 0.08 of its potential returns per unit of risk. Mid Southern Bancorp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,075 in Mid Southern Bancorp on September 4, 2024 and sell it today you would earn a total of 195.00 from holding Mid Southern Bancorp or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 7.77% |
| Values | Daily Returns |
Byline Bancorp vs. Mid Southern Bancorp
Performance |
| Timeline |
| Byline Bancorp |
| Mid Southern Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Byline Bancorp and Mid Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Mid Southern
The main advantage of trading using opposite Byline Bancorp and Mid Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Mid Southern 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 Mid Southern will offset losses from the drop in Mid Southern's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Mid Southern vs. Community West Bancshares | Mid Southern vs. First Financial Northwest | Mid Southern vs. CF Bankshares | Mid Southern vs. Home Federal 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |