Correlation Between Consumer Portfolio and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both Consumer Portfolio 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 Consumer Portfolio and Byline Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consumer Portfolio Services and Byline Bancorp, you can compare the effects of market volatilities on Consumer Portfolio 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 Consumer Portfolio with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumer Portfolio and Byline Bancorp.
Diversification Opportunities for Consumer Portfolio and Byline Bancorp
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Consumer and Byline is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Portfolio Services and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and Consumer Portfolio 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 Consumer Portfolio Services 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 Consumer Portfolio i.e., Consumer Portfolio and Byline Bancorp go up and down completely randomly.
Pair Corralation between Consumer Portfolio and Byline Bancorp
Given the investment horizon of 90 days Consumer Portfolio Services is expected to generate 1.67 times more return on investment than Byline Bancorp. However, Consumer Portfolio is 1.67 times more volatile than Byline Bancorp. It trades about 0.18 of its potential returns per unit of risk. Byline Bancorp is currently generating about 0.08 per unit of risk. If you would invest 754.00 in Consumer Portfolio Services on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Consumer Portfolio Services or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consumer Portfolio Services vs. Byline Bancorp
Performance |
| Timeline |
| Consumer Portfolio |
| Byline Bancorp |
Consumer Portfolio and Byline Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consumer Portfolio and Byline Bancorp
The main advantage of trading using opposite Consumer Portfolio and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumer Portfolio 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.| Consumer Portfolio vs. Visa Class A | Consumer Portfolio vs. Mastercard | Consumer Portfolio vs. Oshidori International Holdings | Consumer Portfolio vs. US70082LAB36 |
| Byline Bancorp vs. HMN Financial | Byline Bancorp vs. Lake Shore Bancorp | Byline Bancorp vs. Rhinebeck Bancorp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |