Correlation Between Westbury Bancorp and Wintrust Financial
Can any of the company-specific risk be diversified away by investing in both Westbury Bancorp 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 Westbury Bancorp and Wintrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westbury Bancorp and Wintrust Financial Corp, you can compare the effects of market volatilities on Westbury Bancorp 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 Westbury Bancorp with a short position of Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westbury Bancorp and Wintrust Financial.
Diversification Opportunities for Westbury Bancorp and Wintrust Financial
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Westbury and Wintrust is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Westbury Bancorp 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 Westbury Bancorp 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 Westbury Bancorp 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 Westbury Bancorp i.e., Westbury Bancorp and Wintrust Financial go up and down completely randomly.
Pair Corralation between Westbury Bancorp and Wintrust Financial
If you would invest 2,515 in Wintrust Financial Corp on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Wintrust Financial Corp or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Westbury Bancorp vs. Wintrust Financial Corp
Performance |
| Timeline |
| Westbury Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wintrust Financial Corp |
Westbury Bancorp and Wintrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westbury Bancorp and Wintrust Financial
The main advantage of trading using opposite Westbury Bancorp and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westbury Bancorp 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.| Westbury Bancorp vs. Home Federal Bancorp | Westbury Bancorp vs. First Northwest Bancorp | Westbury Bancorp vs. First Community | Westbury Bancorp vs. Oak Valley Bancorp |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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