Correlation Between Wintrust Financial and Xp

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

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

Diversification Opportunities for Wintrust Financial and Xp

0.55

Correlation Coefficient

Wintrust Financial  Xp

Very weak diversification

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

Pair Corralation between Wintrust Financial and Xp

Given the investment horizon of 90 days Wintrust Financial is expected to under-perform the Xp. But the stock apears to be less risky and, when comparing its historical volatility, Wintrust Financial is 1.27 times less risky than Xp. The stock trades about -0.01 of its potential returns per unit of risk. The Xp Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,891  in Xp Inc on September 5, 2025 and sell it today you would earn a total of  94.00  from holding Xp Inc or generate 4.97% 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.  Xp Inc

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.

Xp Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Xp Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Xp may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Wintrust Financial and Xp

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

The idea behind Wintrust Financial and Xp Inc 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.