Correlation Between CullenFrost Bankers and Wintrust Financial
Can any of the company-specific risk be diversified away by investing in both CullenFrost Bankers 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 CullenFrost Bankers and Wintrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CullenFrost Bankers and Wintrust Financial, you can compare the effects of market volatilities on CullenFrost Bankers 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 CullenFrost Bankers with a short position of Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CullenFrost Bankers and Wintrust Financial.
Diversification Opportunities for CullenFrost Bankers and Wintrust Financial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CullenFrost and Wintrust is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CullenFrost Bankers and Wintrust Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial and CullenFrost Bankers 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 CullenFrost Bankers 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 has no effect on the direction of CullenFrost Bankers i.e., CullenFrost Bankers and Wintrust Financial go up and down completely randomly.
Pair Corralation between CullenFrost Bankers and Wintrust Financial
Considering the 90-day investment horizon CullenFrost Bankers is expected to under-perform the Wintrust Financial. But the stock apears to be less risky and, when comparing its historical volatility, CullenFrost Bankers is 1.14 times less risky than Wintrust Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Wintrust Financial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11,720 in Wintrust Financial on August 19, 2025 and sell it today you would earn a total of 625.00 from holding Wintrust Financial or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CullenFrost Bankers vs. Wintrust Financial
Performance |
| Timeline |
| CullenFrost Bankers |
| Wintrust Financial |
CullenFrost Bankers and Wintrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CullenFrost Bankers and Wintrust Financial
The main advantage of trading using opposite CullenFrost Bankers and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CullenFrost Bankers 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.| CullenFrost Bankers vs. Old National Bancorp | CullenFrost Bankers vs. UMB Financial | CullenFrost Bankers vs. Popular | CullenFrost Bankers vs. Commerce Bancshares |
| Wintrust Financial vs. FirstSun Capital Bancorp | Wintrust Financial vs. CullenFrost Bankers | Wintrust Financial vs. Preferred Bank | Wintrust Financial vs. Triumph Financial, |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |