Correlation Between Wintrust Financial and WesBanco
Can any of the company-specific risk be diversified away by investing in both Wintrust Financial and WesBanco 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 WesBanco 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 WesBanco, you can compare the effects of market volatilities on Wintrust Financial and WesBanco 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 WesBanco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintrust Financial and WesBanco.
Diversification Opportunities for Wintrust Financial and WesBanco
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wintrust and WesBanco is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial Corp and WesBanco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WesBanco 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 WesBanco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WesBanco has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and WesBanco go up and down completely randomly.
Pair Corralation between Wintrust Financial and WesBanco
Assuming the 90 days horizon Wintrust Financial is expected to generate 1.56 times less return on investment than WesBanco. But when comparing it to its historical volatility, Wintrust Financial Corp is 2.87 times less risky than WesBanco. It trades about 0.21 of its potential returns per unit of risk. WesBanco is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,506 in WesBanco on September 1, 2024 and sell it today you would earn a total of 23.00 from holding WesBanco or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintrust Financial Corp vs. WesBanco
Performance |
| Timeline |
| Wintrust Financial Corp |
| WesBanco |
Wintrust Financial and WesBanco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintrust Financial and WesBanco
The main advantage of trading using opposite Wintrust Financial and WesBanco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintrust Financial position performs unexpectedly, WesBanco 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 WesBanco will offset losses from the drop in WesBanco's long position.| Wintrust Financial vs. KeyCorp | Wintrust Financial vs. KeyCorp | Wintrust Financial vs. Fifth Third Bancorp | Wintrust Financial vs. Citizens Financial Group |
| WesBanco vs. SFL Corporation | WesBanco vs. Eldorado Gold Corp | WesBanco vs. Griffon | WesBanco vs. Chester Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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