Correlation Between V2X and Wintrust Financial

Can any of the company-specific risk be diversified away by investing in both V2X 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 V2X and Wintrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between V2X Inc and Wintrust Financial, you can compare the effects of market volatilities on V2X 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 V2X with a short position of Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2X and Wintrust Financial.

Diversification Opportunities for V2X and Wintrust Financial

0.41

Correlation Coefficient

V2X  Wintrust Financial

Very weak diversification

The 3 months correlation between V2X and Wintrust is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding V2X Inc and Wintrust Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial and V2X 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 V2X Inc 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 V2X i.e., V2X and Wintrust Financial go up and down completely randomly.

Pair Corralation between V2X and Wintrust Financial

Considering the 90-day investment horizon V2X Inc is expected to generate 1.91 times more return on investment than Wintrust Financial. However, V2X is 1.91 times more volatile than Wintrust Financial. It trades about 0.13 of its potential returns per unit of risk. Wintrust Financial is currently generating about 0.06 per unit of risk. If you would invest  4,804  in V2X Inc on May 17, 2025 and sell it today you would earn a total of  1,205  from holding V2X Inc or generate 25.08% return on investment over 90 days.

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

V2X Inc  vs.  Wintrust Financial

V2X Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in V2X Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, V2X showed solid returns over the last few months and may actually be approaching a breakup point.

Wintrust Financial

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Wintrust Financial are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. 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 V2X and Wintrust Financial

The main advantage of trading using opposite V2X and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2X 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 V2X Inc 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.