Correlation Between Wintrust Financial and Globe Life
Can any of the company-specific risk be diversified away by investing in both Wintrust Financial and Globe Life 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 Globe Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintrust Financial and Globe Life, you can compare the effects of market volatilities on Wintrust Financial and Globe Life 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 Globe Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintrust Financial and Globe Life.
Diversification Opportunities for Wintrust Financial and Globe Life
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintrust and Globe is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and Globe Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Life 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 Globe Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Life has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and Globe Life go up and down completely randomly.
Pair Corralation between Wintrust Financial and Globe Life
Given the investment horizon of 90 days Wintrust Financial is expected to generate 1.55 times more return on investment than Globe Life. However, Wintrust Financial is 1.55 times more volatile than Globe Life. It trades about -0.03 of its potential returns per unit of risk. Globe Life is currently generating about -0.07 per unit of risk. If you would invest 13,718 in Wintrust Financial on August 27, 2025 and sell it today you would lose (519.00) from holding Wintrust Financial or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintrust Financial vs. Globe Life
Performance |
| Timeline |
| Wintrust Financial |
| Globe Life |
Wintrust Financial and Globe Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintrust Financial and Globe Life
The main advantage of trading using opposite Wintrust Financial and Globe Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintrust Financial position performs unexpectedly, Globe Life 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 Globe Life will offset losses from the drop in Globe Life's long position.| Wintrust Financial vs. Pintec Technology Holdings | Wintrust Financial vs. Cleanaway Waste Management | Wintrust Financial vs. Dynasty Fine Wines | Wintrust Financial vs. Asure Software |
| Globe Life vs. NH Foods Ltd | Globe Life vs. Puhui Wealth Investment | Globe Life vs. Origin Investment Corp | Globe Life vs. BlackRock Investment Quality |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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