Correlation Between Byline Bancorp and Stock Yards
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Stock Yards 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 Stock Yards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Stock Yards Bancorp, you can compare the effects of market volatilities on Byline Bancorp and Stock Yards 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 Stock Yards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Stock Yards.
Diversification Opportunities for Byline Bancorp and Stock Yards
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Stock is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Stock Yards Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Yards 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 Stock Yards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Yards Bancorp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Stock Yards go up and down completely randomly.
Pair Corralation between Byline Bancorp and Stock Yards
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.15 times less return on investment than Stock Yards. In addition to that, Byline Bancorp is 1.29 times more volatile than Stock Yards Bancorp. It trades about 0.17 of its total potential returns per unit of risk. Stock Yards Bancorp is currently generating about 0.25 per unit of volatility. If you would invest 6,543 in Stock Yards Bancorp on August 31, 2024 and sell it today you would earn a total of 1,144 from holding Stock Yards Bancorp or generate 17.48% 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. Stock Yards Bancorp
Performance |
| Timeline |
| Byline Bancorp |
| Stock Yards Bancorp |
Byline Bancorp and Stock Yards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Stock Yards
The main advantage of trading using opposite Byline Bancorp and Stock Yards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Stock Yards 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 Stock Yards will offset losses from the drop in Stock Yards' long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Stock Yards vs. First National Corp | Stock Yards vs. Southern Missouri Bancorp | Stock Yards vs. Shore Bancshares | Stock Yards vs. First Capital |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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