Correlation Between Popular Capital and Wintrust Financial
Can any of the company-specific risk be diversified away by investing in both Popular Capital and Wintrust Financial 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 Popular Capital and Wintrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Popular Capital Trust and Wintrust Financial Corp, you can compare the effects of market volatilities on Popular Capital and Wintrust Financial 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 Popular Capital with a short position of Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Popular Capital and Wintrust Financial.
Diversification Opportunities for Popular Capital and Wintrust Financial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Popular and Wintrust is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Popular Capital Trust and Wintrust Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial Corp and Popular Capital 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 Popular Capital Trust are associated (or correlated) with Wintrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintrust Financial Corp has no effect on the direction of Popular Capital i.e., Popular Capital and Wintrust Financial go up and down completely randomly.
Pair Corralation between Popular Capital and Wintrust Financial
Assuming the 90 days horizon Popular Capital is expected to generate 1.62 times less return on investment than Wintrust Financial. But when comparing it to its historical volatility, Popular Capital Trust is 1.34 times less risky than Wintrust Financial. It trades about 0.02 of its potential returns per unit of risk. Wintrust Financial Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,223 in Wintrust Financial Corp on August 31, 2024 and sell it today you would earn a total of 297.00 from holding Wintrust Financial Corp or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.9% |
| Values | Daily Returns |
Popular Capital Trust vs. Wintrust Financial Corp
Performance |
| Timeline |
| Popular Capital Trust |
| Wintrust Financial Corp |
Popular Capital and Wintrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Popular Capital and Wintrust Financial
The main advantage of trading using opposite Popular Capital and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Popular Capital position performs unexpectedly, Wintrust Financial 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 Wintrust Financial will offset losses from the drop in Wintrust Financial's long position.| Popular Capital vs. BFC Capital Trust | Popular Capital vs. Popular | Popular Capital vs. Oxford Lane Capital | Popular Capital vs. Wintrust Financial Corp |
| Wintrust Financial vs. KeyCorp | Wintrust Financial vs. KeyCorp | Wintrust Financial vs. Fifth Third Bancorp | Wintrust Financial vs. Citizens 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |