Byline Bancorp Stock Volatility

BY Stock  USD 31.94  0.61  1.95%   
Byline Bancorp appears to be very steady, given 3 months investment horizon. Byline Bancorp secures Sharpe Ratio (or Efficiency) of 0.1, which signifies that the company had a 0.1% return per unit of risk over the last 3 months. We have found thirty technical indicators for Byline Bancorp, which you can use to evaluate the volatility of the firm. Please makes use of Byline Bancorp's Risk Adjusted Performance of 0.1003, mean deviation of 1.61, and Downside Deviation of 1.51 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Byline Bancorp's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Byline Bancorp Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Byline daily returns, and it is calculated using variance and standard deviation. We also use Byline's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Byline Bancorp volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Byline Bancorp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Byline Bancorp's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Byline Bancorp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Byline Bancorp at lower prices. For example, an investor can purchase Byline stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Byline Bancorp's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Byline Stock

  0.99AX Axos FinancialPairCorr
  0.97PB Prosperity Bancshares Fiscal Year End 22nd of January 2025 PairCorr
  0.9RF Regions Financial Fiscal Year End 17th of January 2025 PairCorr
  0.77VBNK VersaBank Fiscal Year End 11th of December 2024 PairCorr

Moving against Byline Stock

  0.57CFG-PE Citizens FinancialPairCorr
  0.53TFC-PR Truist FinancialPairCorr
  0.52TFC-PO Truist FinancialPairCorr
  0.38WF Woori Financial GroupPairCorr

Byline Bancorp Market Sensitivity And Downside Risk

Byline Bancorp's beta coefficient measures the volatility of Byline stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Byline stock's returns against your selected market. In other words, Byline Bancorp's beta of 2.46 provides an investor with an approximation of how much risk Byline Bancorp stock can potentially add to one of your existing portfolios. Byline Bancorp has relatively low volatility with skewness of 3.58 and kurtosis of 20.72. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Byline Bancorp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Byline Bancorp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Byline Bancorp Demand Trend
Check current 90 days Byline Bancorp correlation with market (Dow Jones Industrial)

Byline Beta

    
  2.46  
Byline standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  2.62  
It is essential to understand the difference between upside risk (as represented by Byline Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Byline Bancorp's daily returns or price. Since the actual investment returns on holding a position in byline stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Byline Bancorp.

Byline Bancorp Stock Volatility Analysis

Volatility refers to the frequency at which Byline Bancorp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Byline Bancorp's price changes. Investors will then calculate the volatility of Byline Bancorp's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Byline Bancorp's volatility:

Historical Volatility

This type of stock volatility measures Byline Bancorp's fluctuations based on previous trends. It's commonly used to predict Byline Bancorp's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Byline Bancorp's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Byline Bancorp's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Byline Bancorp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Byline Bancorp Projected Return Density Against Market

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 2.4613 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Byline Bancorp will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Byline Bancorp or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Byline Bancorp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Byline stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Byline Bancorp has an alpha of 0.0164, implying that it can generate a 0.0164 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Byline Bancorp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how byline stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Byline Bancorp Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Byline Bancorp Stock Risk Measures

Allowing for the 90-day total investment horizon the coefficient of variation of Byline Bancorp is 985.98. The daily returns are distributed with a variance of 6.86 and standard deviation of 2.62. The mean deviation of Byline Bancorp is currently at 1.54. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α
Alpha over Dow Jones
0.02
β
Beta against Dow Jones2.46
σ
Overall volatility
2.62
Ir
Information ratio 0.07

Byline Bancorp Stock Return Volatility

Byline Bancorp historical daily return volatility represents how much of Byline Bancorp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.6194% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Byline Bancorp Volatility

Volatility is a rate at which the price of Byline Bancorp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Byline Bancorp may increase or decrease. In other words, similar to Byline's beta indicator, it measures the risk of Byline Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Byline Bancorp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for Next Year
Selling And Marketing Expenses145.5 M152.8 M
Market Cap943.5 M560.1 M
Byline Bancorp's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Byline Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Byline Bancorp's price varies over time.

3 ways to utilize Byline Bancorp's volatility to invest better

Higher Byline Bancorp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Byline Bancorp stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Byline Bancorp stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Byline Bancorp investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Byline Bancorp's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Byline Bancorp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Byline Bancorp Investment Opportunity

Byline Bancorp has a volatility of 2.62 and is 3.45 times more volatile than Dow Jones Industrial. 23 percent of all equities and portfolios are less risky than Byline Bancorp. You can use Byline Bancorp to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Byline Bancorp to be traded at $35.13 in 90 days.

Poor diversification

The correlation between Byline Bancorp and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and DJI in the same portfolio, assuming nothing else is changed.

Byline Bancorp Additional Risk Indicators

The analysis of Byline Bancorp's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Byline Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of Byline Bancorp stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Byline Bancorp Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Byline Bancorp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Byline Bancorp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Byline Bancorp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Byline Bancorp.

Additional Tools for Byline Stock Analysis

When running Byline Bancorp's price analysis, check to measure Byline Bancorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Byline Bancorp is operating at the current time. Most of Byline Bancorp's value examination focuses on studying past and present price action to predict the probability of Byline Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Byline Bancorp's price. Additionally, you may evaluate how the addition of Byline Bancorp to your portfolios can decrease your overall portfolio volatility.