Correlation Between Huntington Bancshares and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares 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 Huntington Bancshares and Byline Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntington Bancshares Incorporated and Byline Bancorp, you can compare the effects of market volatilities on Huntington Bancshares 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 Huntington Bancshares with a short position of Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and Byline Bancorp.
Diversification Opportunities for Huntington Bancshares and Byline Bancorp
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huntington and Byline is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline Bancorp and Huntington Bancshares 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 Huntington Bancshares Incorporated 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 Huntington Bancshares i.e., Huntington Bancshares and Byline Bancorp go up and down completely randomly.
Pair Corralation between Huntington Bancshares and Byline Bancorp
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to under-perform the Byline Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, Huntington Bancshares Incorporated is 1.64 times less risky than Byline Bancorp. The stock trades about -0.06 of its potential returns per unit of risk. The Byline Bancorp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,101 in Byline Bancorp on February 6, 2024 and sell it today you would earn a total of 226.00 from holding Byline Bancorp or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. Byline Bancorp
Performance |
| Timeline |
| Huntington Bancshares |
| Byline Bancorp |
Huntington Bancshares and Byline Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and Byline Bancorp
The main advantage of trading using opposite Huntington Bancshares and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares 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.| Huntington Bancshares vs. Northfield Bancorp | Huntington Bancshares vs. FNB Inc | Huntington Bancshares vs. Mifflinburg Bancorp | Huntington Bancshares vs. Commercial National Financial |
| Byline Bancorp vs. Northfield Bancorp | Byline Bancorp vs. FNB Inc | Byline Bancorp vs. Mifflinburg Bancorp | Byline Bancorp vs. Commercial National Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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