Correlation Between Associated Banc and Wintrust Financial

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

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

Diversification Opportunities for Associated Banc and Wintrust Financial

-0.6

Correlation Coefficient

Associated Banc  Wintrust Financial

Excellent diversification

The 3 months correlation between Associated and Wintrust is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Associated Banc Corp and Wintrust Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial Corp and Associated Banc 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 Associated Banc Corp 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 Corp has no effect on the direction of Associated Banc i.e., Associated Banc and Wintrust Financial go up and down completely randomly.

Pair Corralation between Associated Banc and Wintrust Financial

Assuming the 90 days trading horizon Associated Banc Corp is expected to generate 23.99 times more return on investment than Wintrust Financial. However, Associated Banc is 23.99 times more volatile than Wintrust Financial Corp. It trades about 0.24 of its potential returns per unit of risk. Wintrust Financial Corp is currently generating about 0.59 per unit of risk. If you would invest  1,931  in Associated Banc Corp on July 1, 2025 and sell it today you would earn a total of  249.00  from holding Associated Banc Corp or generate 12.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	15.63%
Values	Daily Returns

Associated Banc Corp  vs.  Wintrust Financial Corp

Associated Banc Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Associated Banc Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, Associated Banc may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Wintrust Financial Corp

Risk-Adjusted Performance

Prime

Over the last 90 days Wintrust Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Wintrust Financial is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Associated Banc and Wintrust Financial

The main advantage of trading using opposite Associated Banc and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Banc 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 Associated Banc Corp and Wintrust Financial Corp 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.