Correlation Between Wintrust Financial and Hexcel

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

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

Diversification Opportunities for Wintrust Financial and Hexcel

0.92

Correlation Coefficient

Wintrust Financial  Hexcel

Almost no diversification

The 3 months correlation between Wintrust and Hexcel is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and Hexcel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel 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 Hexcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and Hexcel go up and down completely randomly.

Pair Corralation between Wintrust Financial and Hexcel

Given the investment horizon of 90 days Wintrust Financial is expected to generate 1.75 times less return on investment than Hexcel. In addition to that, Wintrust Financial is 1.01 times more volatile than Hexcel. It trades about 0.1 of its total potential returns per unit of risk. Hexcel is currently generating about 0.17 per unit of volatility. If you would invest  5,050  in Hexcel on May 6, 2025 and sell it today you would earn a total of  905.00  from holding Hexcel or generate 17.92% 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.  Hexcel

Wintrust Financial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wintrust Financial are ranked lower than 7 (%) 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.

Hexcel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hexcel are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Hexcel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wintrust Financial and Hexcel

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

The idea behind Wintrust Financial and Hexcel 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.