Correlation Between Byline Bancorp and SmartFinancial,

Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and SmartFinancial, 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 SmartFinancial, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Byline Bancorp and SmartFinancial,, you can compare the effects of market volatilities on Byline Bancorp and SmartFinancial, 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 SmartFinancial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and SmartFinancial,.

Diversification Opportunities for Byline Bancorp and SmartFinancial,

0.92

Correlation Coefficient

Byline Bancorp  SmartFinancial,

Almost no diversification

The 3 months correlation between Byline and SmartFinancial, is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and SmartFinancial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartFinancial, 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 SmartFinancial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartFinancial, has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and SmartFinancial, go up and down completely randomly.

Pair Corralation between Byline Bancorp and SmartFinancial,

Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.26 times more return on investment than SmartFinancial,. However, Byline Bancorp is 1.26 times more volatile than SmartFinancial,. It trades about 0.08 of its potential returns per unit of risk. SmartFinancial, is currently generating about 0.08 per unit of risk. If you would invest  2,607  in Byline Bancorp on September 27, 2024 and sell it today you would earn a total of  310.00  from holding Byline Bancorp or generate 11.89% 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.  SmartFinancial,

Byline Bancorp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Byline Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Byline Bancorp showed solid returns over the last few months and may actually be approaching a breakup point.

SmartFinancial,

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SmartFinancial, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, SmartFinancial, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Byline Bancorp and SmartFinancial,

The main advantage of trading using opposite Byline Bancorp and SmartFinancial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, SmartFinancial, 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 SmartFinancial, will offset losses from the drop in SmartFinancial,'s long position.

The idea behind Byline Bancorp and SmartFinancial, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.