Correlation Between Byline Bancorp and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Oxford Square 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 Oxford Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Oxford Square Capital, you can compare the effects of market volatilities on Byline Bancorp and Oxford Square 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 Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Oxford Square.
Diversification Opportunities for Byline Bancorp and Oxford Square
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Byline and Oxford is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Oxford Square Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Square Capital 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 Oxford Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Square Capital has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Oxford Square go up and down completely randomly.
Pair Corralation between Byline Bancorp and Oxford Square
Allowing for the 90-day total investment horizon Byline Bancorp is expected to under-perform the Oxford Square. In addition to that, Byline Bancorp is 1.63 times more volatile than Oxford Square Capital. It trades about -0.02 of its total potential returns per unit of risk. Oxford Square Capital is currently generating about 0.41 per unit of volatility. If you would invest 263.00 in Oxford Square Capital on November 27, 2024 and sell it today you would earn a total of 18.00 from holding Oxford Square Capital or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. Oxford Square Capital
Performance |
| Timeline |
| Byline Bancorp |
| Oxford Square Capital |
Byline Bancorp and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Oxford Square
The main advantage of trading using opposite Byline Bancorp and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Oxford Square 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 Oxford Square will offset losses from the drop in Oxford Square's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Oxford Square vs. Eagle Point Credit | Oxford Square vs. Cornerstone Strategic Return | Oxford Square vs. Cornerstone Strategic Value | Oxford Square vs. Guggenheim Strategic Opportunities |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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