Correlation Between Byline Bancorp and MVB Financial
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and MVB 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 MVB 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 MVB Financial Corp, you can compare the effects of market volatilities on Byline Bancorp and MVB 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 MVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and MVB Financial.
Diversification Opportunities for Byline Bancorp and MVB Financial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and MVB is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and MVB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MVB 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 MVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MVB Financial Corp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and MVB Financial go up and down completely randomly.
Pair Corralation between Byline Bancorp and MVB Financial
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 0.82 times more return on investment than MVB Financial. However, Byline Bancorp is 1.21 times less risky than MVB Financial. It trades about 0.21 of its potential returns per unit of risk. MVB Financial Corp is currently generating about 0.15 per unit of risk. If you would invest 2,682 in Byline Bancorp on September 1, 2024 and sell it today you would earn a total of 460.00 from holding Byline Bancorp or generate 17.15% 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. MVB Financial Corp
Performance |
| Timeline |
| Byline Bancorp |
| MVB Financial Corp |
Byline Bancorp and MVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and MVB Financial
The main advantage of trading using opposite Byline Bancorp and MVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, MVB 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 MVB Financial will offset losses from the drop in MVB 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 |
| MVB Financial vs. Community West Bancshares | MVB Financial vs. First Financial Northwest | MVB Financial vs. CF Bankshares | MVB Financial 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |