Correlation Between Ffbw and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both Ffbw 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 Ffbw and Byline Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ffbw Inc and Byline Bancorp, you can compare the effects of market volatilities on Ffbw 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 Ffbw with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffbw and Byline Bancorp.
Diversification Opportunities for Ffbw and Byline Bancorp
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ffbw and Byline is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ffbw Inc and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and Ffbw 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 Ffbw Inc 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 Ffbw i.e., Ffbw and Byline Bancorp go up and down completely randomly.
Pair Corralation between Ffbw and Byline Bancorp
If you would invest 2,094 in Byline Bancorp on December 29, 2023 and sell it today you would earn a total of 67.00 from holding Byline Bancorp or generate 3.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Ffbw Inc vs. Byline Bancorp
Performance |
Timeline |
Ffbw Inc |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Byline Bancorp |
Ffbw and Byline Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ffbw and Byline Bancorp
The main advantage of trading using opposite Ffbw and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ffbw 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.Ffbw vs. MSAD Insurance Group | Ffbw vs. Sun Life Financial | Ffbw vs. Cedar Realty Trust | Ffbw vs. Bluerock Homes Trust |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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