Correlation Between Renasant and Wintrust Financial

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

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

Diversification Opportunities for Renasant and Wintrust Financial

0.8

Correlation Coefficient

Renasant  Wintrust Financial

Very poor diversification

The 3 months correlation between Renasant and Wintrust is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Renasant and Wintrust Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial and Renasant 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 Renasant 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 Renasant i.e., Renasant and Wintrust Financial go up and down completely randomly.

Pair Corralation between Renasant and Wintrust Financial

Given the investment horizon of 90 days Renasant is expected to under-perform the Wintrust Financial. In addition to that, Renasant is 1.11 times more volatile than Wintrust Financial. It trades about -0.1 of its total potential returns per unit of risk. Wintrust Financial is currently generating about -0.05 per unit of volatility. If you would invest  13,231  in Wintrust Financial on July 13, 2025 and sell it today you would lose (680.00) from holding Wintrust Financial or give up 5.14% of portfolio value over 90 days.

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

Renasant  vs.  Wintrust Financial

Renasant

Risk-Adjusted Performance

Weakest

Over the last 90 days Renasant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Wintrust Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Wintrust Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Wintrust Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Renasant and Wintrust Financial

The main advantage of trading using opposite Renasant and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renasant 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 Renasant 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.