Correlation Between Byline Bancorp and Truist Financial
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Truist 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 Truist 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 Truist Financial Corp, you can compare the effects of market volatilities on Byline Bancorp and Truist 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 Truist Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Truist Financial.
Diversification Opportunities for Byline Bancorp and Truist Financial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Byline and Truist is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Truist Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truist 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 Truist Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Truist Financial Corp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Truist Financial go up and down completely randomly.
Pair Corralation between Byline Bancorp and Truist Financial
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.31 times more return on investment than Truist Financial. However, Byline Bancorp is 1.31 times more volatile than Truist Financial Corp. It trades about 0.12 of its potential returns per unit of risk. Truist Financial Corp is currently generating about 0.12 per unit of risk. If you would invest 2,297 in Byline Bancorp on August 24, 2024 and sell it today you would earn a total of 836.00 from holding Byline Bancorp or generate 36.4% 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. Truist Financial Corp
Performance |
| Timeline |
| Byline Bancorp |
| Truist Financial Corp |
Byline Bancorp and Truist Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Truist Financial
The main advantage of trading using opposite Byline Bancorp and Truist Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Truist 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 Truist Financial will offset losses from the drop in Truist 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 |
| Truist Financial vs. PNC Financial Services | Truist Financial vs. KeyCorp | Truist Financial vs. Western Alliance Bancorporation | Truist Financial vs. Zions Bancorporation |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |