Correlation Between Wintrust Financial and Citizens Financial

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

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

Diversification Opportunities for Wintrust Financial and Citizens Financial

0.55

Correlation Coefficient

Wintrust Financial  Citizens Financial

Very weak diversification

The 3 months correlation between Wintrust and Citizens is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and Citizens Financial Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial Group, 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 Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial Group, has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and Citizens Financial go up and down completely randomly.

Pair Corralation between Wintrust Financial and Citizens Financial

Given the investment horizon of 90 days Wintrust Financial is expected to under-perform the Citizens Financial. In addition to that, Wintrust Financial is 1.02 times more volatile than Citizens Financial Group,. It trades about -0.02 of its total potential returns per unit of risk. Citizens Financial Group, is currently generating about 0.04 per unit of volatility. If you would invest  5,085  in Citizens Financial Group, on August 26, 2025 and sell it today you would earn a total of  194.00  from holding Citizens Financial Group, or generate 3.82% return on investment over 90 days.

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

Wintrust Financial  vs.  Citizens Financial Group,

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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Citizens Financial Group,

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Financial Group, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Citizens Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Wintrust Financial and Citizens Financial

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

The idea behind Wintrust Financial and Citizens Financial Group, 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.