Correlation Between Monarch Financial and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both Monarch 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 Monarch 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 Monarch Financial Holdings and Byline Bancorp, you can compare the effects of market volatilities on Monarch 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 Monarch Financial with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Financial and Byline Bancorp.
Diversification Opportunities for Monarch Financial and Byline Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monarch and Byline is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Financial Holdings and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and Monarch 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 Monarch Financial Holdings 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 Monarch Financial i.e., Monarch Financial and Byline Bancorp go up and down completely randomly.
Pair Corralation between Monarch Financial and Byline Bancorp
If you would invest 2,046 in Byline Bancorp on January 26, 2024 and sell it today you would earn a total of 97.00 from holding Byline Bancorp or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Monarch Financial Holdings vs. Byline Bancorp
Performance |
| Timeline |
| Monarch Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Byline Bancorp |
Monarch Financial and Byline Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monarch Financial and Byline Bancorp
The main advantage of trading using opposite Monarch Financial and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monarch 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.| Monarch Financial vs. LithiumBank Resources Corp | Monarch Financial vs. Pintec Technology Holdings | Monarch Financial vs. AmTrust Financial Services | Monarch Financial vs. Freedom Bank of |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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