Correlation Between Wintrust Financial and Fulton Financial
Can any of the company-specific risk be diversified away by investing in both Wintrust Financial and Fulton 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 Wintrust Financial and Fulton Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintrust Financial Corp and Fulton Financial, you can compare the effects of market volatilities on Wintrust Financial and Fulton 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 Wintrust Financial with a short position of Fulton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintrust Financial and Fulton Financial.
Diversification Opportunities for Wintrust Financial and Fulton Financial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wintrust and Fulton is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial Corp and Fulton Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulton Financial 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 Corp are associated (or correlated) with Fulton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulton Financial has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and Fulton Financial go up and down completely randomly.
Pair Corralation between Wintrust Financial and Fulton Financial
Assuming the 90 days horizon Wintrust Financial Corp is expected to generate 0.16 times more return on investment than Fulton Financial. However, Wintrust Financial Corp is 6.29 times less risky than Fulton Financial. It trades about 0.3 of its potential returns per unit of risk. Fulton Financial is currently generating about -0.13 per unit of risk. If you would invest 2,487 in Wintrust Financial Corp on October 26, 2024 and sell it today you would earn a total of 24.00 from holding Wintrust Financial Corp or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintrust Financial Corp vs. Fulton Financial
Performance |
| Timeline |
| Wintrust Financial Corp |
| Fulton Financial |
Wintrust Financial and Fulton Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintrust Financial and Fulton Financial
The main advantage of trading using opposite Wintrust Financial and Fulton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintrust Financial position performs unexpectedly, Fulton 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 Fulton Financial will offset losses from the drop in Fulton Financial's long position.| Wintrust Financial vs. Wintrust Financial Corp | Wintrust Financial vs. WesBanco | Wintrust Financial vs. Heartland Financial USA | Wintrust Financial vs. Pinnacle Financial Partners |
| Fulton Financial vs. First Citizens BancShares | Fulton Financial vs. Fifth Third Bancorp | Fulton Financial vs. Dime Community Bancshares | Fulton Financial vs. Heartland Financial USA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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