Correlation Between Wintrust Financial and OFG Bancorp
Can any of the company-specific risk be diversified away by investing in both Wintrust Financial and OFG 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 Wintrust Financial and OFG Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintrust Financial and OFG Bancorp, you can compare the effects of market volatilities on Wintrust Financial and OFG 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 Wintrust Financial with a short position of OFG Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintrust Financial and OFG Bancorp.
Diversification Opportunities for Wintrust Financial and OFG Bancorp
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wintrust and OFG is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and OFG Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFG Bancorp and Wintrust 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 Wintrust Financial are associated (or correlated) with OFG Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFG Bancorp has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and OFG Bancorp go up and down completely randomly.
Pair Corralation between Wintrust Financial and OFG Bancorp
Given the investment horizon of 90 days Wintrust Financial is expected to generate 1.04 times more return on investment than OFG Bancorp. However, Wintrust Financial is 1.04 times more volatile than OFG Bancorp. It trades about 0.14 of its potential returns per unit of risk. OFG Bancorp is currently generating about 0.1 per unit of risk. If you would invest 9,664 in Wintrust Financial on August 25, 2024 and sell it today you would earn a total of 4,044 from holding Wintrust Financial or generate 41.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintrust Financial vs. OFG Bancorp
Performance |
| Timeline |
| Wintrust Financial |
| OFG Bancorp |
Wintrust Financial and OFG Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintrust Financial and OFG Bancorp
The main advantage of trading using opposite Wintrust Financial and OFG Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintrust Financial position performs unexpectedly, OFG 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 OFG Bancorp will offset losses from the drop in OFG Bancorp's long position.| Wintrust Financial vs. Bank of Marin | Wintrust Financial vs. First Financial | Wintrust Financial vs. TriCo Bancshares | Wintrust Financial vs. Community Trust Bancorp |
| OFG Bancorp vs. Popular | OFG Bancorp vs. The First Bancshares, | OFG Bancorp vs. First Commonwealth Financial | OFG Bancorp vs. First 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |