Correlation Between FS Bancorp and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both FS Bancorp and Byline Bancorp 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 FS Bancorp and Byline Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FS Bancorp and Byline Bancorp, you can compare the effects of market volatilities on FS Bancorp and Byline Bancorp 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 FS Bancorp with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS Bancorp and Byline Bancorp.
Diversification Opportunities for FS Bancorp and Byline Bancorp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FXLG and Byline is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding FS Bancorp and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and FS 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 FS Bancorp are associated (or correlated) with Byline Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byline Bancorp has no effect on the direction of FS Bancorp i.e., FS Bancorp and Byline Bancorp go up and down completely randomly.
Pair Corralation between FS Bancorp and Byline Bancorp
Given the investment horizon of 90 days FS Bancorp is expected to generate 10.75 times less return on investment than Byline Bancorp. But when comparing it to its historical volatility, FS Bancorp is 11.04 times less risky than Byline Bancorp. It trades about 0.21 of its potential returns per unit of risk. Byline Bancorp is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FS Bancorp vs. Byline Bancorp
Performance |
| Timeline |
| FS Bancorp |
| Byline Bancorp |
FS Bancorp and Byline Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS Bancorp and Byline Bancorp
The main advantage of trading using opposite FS Bancorp and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS Bancorp position performs unexpectedly, Byline Bancorp 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 Byline Bancorp will offset losses from the drop in Byline Bancorp's long position.| FS Bancorp vs. Eastern Michigan Financial | FS Bancorp vs. Grand River Commerce | FS Bancorp vs. Bank of Botetourt | FS Bancorp vs. AmeriServ Financial |
| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |