Correlation Between Byline Bancorp and Grupo Financiero
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Grupo Financiero 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 Grupo Financiero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Grupo Financiero Galicia, you can compare the effects of market volatilities on Byline Bancorp and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Grupo Financiero.
Diversification Opportunities for Byline Bancorp and Grupo Financiero
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Byline and Grupo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Grupo Financiero Galicia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Galicia 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Galicia has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Grupo Financiero go up and down completely randomly.
Pair Corralation between Byline Bancorp and Grupo Financiero
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 7.78 times less return on investment than Grupo Financiero. But when comparing it to its historical volatility, Byline Bancorp is 1.91 times less risky than Grupo Financiero. It trades about 0.07 of its potential returns per unit of risk. Grupo Financiero Galicia is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,229 in Grupo Financiero Galicia on January 31, 2024 and sell it today you would earn a total of 1,014 from holding Grupo Financiero Galicia or generate 45.49% 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. Grupo Financiero Galicia
Performance |
Timeline |
Byline Bancorp |
Grupo Financiero Galicia |
Byline Bancorp and Grupo Financiero Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Byline Bancorp and Grupo Financiero
The main advantage of trading using opposite Byline Bancorp and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. HMN Financial | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP |
Grupo Financiero vs. HMN Financial | Grupo Financiero vs. Community West Bancshares | Grupo Financiero vs. First Financial Northwest | Grupo Financiero vs. Ponce 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stocks Directory Find actively traded stocks across global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |