Correlation Between Wintrust Financial and Comerica Incorporated

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

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

Diversification Opportunities for Wintrust Financial and Comerica Incorporated

-0.21

Correlation Coefficient

Wintrust Financial  Comerica Incorporated

Very good diversification

The 3 months correlation between Wintrust and Comerica is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial and Comerica Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica Incorporated 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 Comerica Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comerica Incorporated has no effect on the direction of Wintrust Financial i.e., Wintrust Financial and Comerica Incorporated go up and down completely randomly.

Pair Corralation between Wintrust Financial and Comerica Incorporated

Given the investment horizon of 90 days Wintrust Financial is expected to generate 45.78 times less return on investment than Comerica Incorporated. But when comparing it to its historical volatility, Wintrust Financial is 1.3 times less risky than Comerica Incorporated. It trades about 0.0 of its potential returns per unit of risk. Comerica Incorporated is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  6,800  in Comerica Incorporated on September 8, 2025 and sell it today you would earn a total of  1,612  from holding Comerica Incorporated or generate 23.71% return on investment over 90 days.

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

Wintrust Financial  vs.  Comerica Incorporated

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

Comerica Incorporated

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Comerica Incorporated are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile primary indicators, Comerica Incorporated sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wintrust Financial and Comerica Incorporated

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

The idea behind Wintrust Financial and Comerica Incorporated 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.