Correlation Between Wintrust Financial and Ameris Bancorp

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

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

Diversification Opportunities for Wintrust Financial and Ameris Bancorp

0.95

Correlation Coefficient

Wintrust Financial  Ameris Bancorp

Almost no diversification

The 3 months correlation between Wintrust and Ameris is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and Ameris Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameris Bancorp 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 Ameris Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameris Bancorp has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and Ameris Bancorp go up and down completely randomly.

Pair Corralation between Wintrust Financial and Ameris Bancorp

Given the investment horizon of 90 days Wintrust Financial is expected to generate 1.18 times less return on investment than Ameris Bancorp. In addition to that, Wintrust Financial is 1.03 times more volatile than Ameris Bancorp. It trades about 0.09 of its total potential returns per unit of risk. Ameris Bancorp is currently generating about 0.1 per unit of volatility. If you would invest  5,997  in Ameris Bancorp on May 4, 2025 and sell it today you would earn a total of  594.00  from holding Ameris Bancorp or generate 9.9% return on investment over 90 days.

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

Wintrust Financial  vs.  Ameris Bancorp

Wintrust Financial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Wintrust Financial are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Wintrust Financial may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Ameris Bancorp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ameris Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Ameris Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Wintrust Financial and Ameris Bancorp

The main advantage of trading using opposite Wintrust Financial and Ameris Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintrust Financial position performs unexpectedly, Ameris Bancorp 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 Ameris Bancorp will offset losses from the drop in Ameris Bancorp's long position.

The idea behind Wintrust Financial and Ameris Bancorp 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.