Correlation Between MB Financial and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both MB Financial 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 MB Financial and Byline Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MB Financial and Byline Bancorp, you can compare the effects of market volatilities on MB Financial 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 MB Financial with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MB Financial and Byline Bancorp.
Diversification Opportunities for MB Financial and Byline Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MBFI and Byline is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MB Financial and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and MB Financial 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 MB Financial 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 MB Financial i.e., MB Financial and Byline Bancorp go up and down completely randomly.
Pair Corralation between MB Financial and Byline Bancorp
If you would invest 2,069 in Byline Bancorp on January 25, 2024 and sell it today you would earn a total of 74.00 from holding Byline Bancorp or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MB Financial vs. Byline Bancorp
Performance |
| Timeline |
| MB Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Byline Bancorp |
MB Financial and Byline Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MB Financial and Byline Bancorp
The main advantage of trading using opposite MB Financial and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MB Financial 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.| MB Financial vs. Cadence Design Systems | MB Financial vs. Alternative Investment | MB Financial vs. Agiliti | MB Financial vs. Zhihu Inc ADR |
| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. HMN Financial | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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