Correlation Between Qilu Bank and Wintrust Financial

Can any of the company-specific risk be diversified away by investing in both Qilu Bank 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 Qilu Bank and Wintrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Qilu Bank Co and Wintrust Financial, you can compare the effects of market volatilities on Qilu Bank 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 Qilu Bank with a short position of Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Wintrust Financial.

Diversification Opportunities for Qilu Bank and Wintrust Financial

-0.86

Correlation Coefficient

Qilu Bank  Wintrust Financial

Pay attention - limited upside

The 3 months correlation between Qilu and Wintrust is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank Co and Wintrust Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial and Qilu Bank 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 Qilu Bank Co 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 Qilu Bank i.e., Qilu Bank and Wintrust Financial go up and down completely randomly.

Pair Corralation between Qilu Bank and Wintrust Financial

Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Wintrust Financial. But the stock apears to be less risky and, when comparing its historical volatility, Qilu Bank Co is 1.13 times less risky than Wintrust Financial. The stock trades about -0.09 of its potential returns per unit of risk. The Wintrust Financial is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  14,113  in Wintrust Financial on October 17, 2025 and sell it today you would earn a total of  609.00  from holding Wintrust Financial or generate 4.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Qilu Bank Co  vs.  Wintrust Financial

Qilu Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Qilu Bank Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Wintrust Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wintrust Financial are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Wintrust Financial exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Qilu Bank and Wintrust Financial

The main advantage of trading using opposite Qilu Bank and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank 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.

The idea behind Qilu Bank Co and Wintrust Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.