Correlation Between Byline Bancorp and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Invesco Municipal 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 Invesco Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Invesco Municipal Trust, you can compare the effects of market volatilities on Byline Bancorp and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Invesco Municipal.
Diversification Opportunities for Byline Bancorp and Invesco Municipal
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Byline and Invesco is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Invesco Municipal Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Trust 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Trust has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Invesco Municipal go up and down completely randomly.
Pair Corralation between Byline Bancorp and Invesco Municipal
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 4.41 times more return on investment than Invesco Municipal. However, Byline Bancorp is 4.41 times more volatile than Invesco Municipal Trust. It trades about 0.12 of its potential returns per unit of risk. Invesco Municipal Trust is currently generating about 0.14 per unit of risk. If you would invest 2,269 in Byline Bancorp on September 1, 2024 and sell it today you would earn a total of 873.00 from holding Byline Bancorp or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. Invesco Municipal Trust
Performance |
| Timeline |
| Byline Bancorp |
| Invesco Municipal Trust |
Byline Bancorp and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Invesco Municipal
The main advantage of trading using opposite Byline Bancorp and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Invesco Municipal vs. Visa Class A | Invesco Municipal vs. Diamond Hill Investment | Invesco Municipal vs. Distoken Acquisition | Invesco Municipal vs. Associated Capital Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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