Correlation Between Wintrust Financial and Itau Unibanco
Can any of the company-specific risk be diversified away by investing in both Wintrust Financial and Itau Unibanco 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 Itau Unibanco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintrust Financial and Itau Unibanco Banco, you can compare the effects of market volatilities on Wintrust Financial and Itau Unibanco 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 Itau Unibanco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintrust Financial and Itau Unibanco.
Diversification Opportunities for Wintrust Financial and Itau Unibanco
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wintrust and Itau is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and Itau Unibanco Banco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itau Unibanco Banco 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 Itau Unibanco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itau Unibanco Banco has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and Itau Unibanco go up and down completely randomly.
Pair Corralation between Wintrust Financial and Itau Unibanco
Given the investment horizon of 90 days Wintrust Financial is expected to generate 2.17 times less return on investment than Itau Unibanco. But when comparing it to its historical volatility, Wintrust Financial is 1.08 times less risky than Itau Unibanco. It trades about 0.02 of its potential returns per unit of risk. Itau Unibanco Banco is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Itau Unibanco Banco on January 24, 2024 and sell it today you would earn a total of 186.00 from holding Itau Unibanco Banco or generate 43.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Wintrust Financial vs. Itau Unibanco Banco
Performance |
| Timeline |
| Wintrust Financial |
| Itau Unibanco Banco |
Wintrust Financial and Itau Unibanco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintrust Financial and Itau Unibanco
The main advantage of trading using opposite Wintrust Financial and Itau Unibanco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintrust Financial position performs unexpectedly, Itau Unibanco 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 Itau Unibanco will offset losses from the drop in Itau Unibanco's long position.| Wintrust Financial vs. HMN Financial | Wintrust Financial vs. Lake Shore Bancorp | Wintrust Financial vs. Rhinebeck Bancorp |
| Itau Unibanco vs. KeyCorp | Itau Unibanco vs. First Mid Illinois | Itau Unibanco vs. Finwise Bancorp | Itau Unibanco vs. Home 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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