Wintrust Financial Corp Preferred Stock Volatility
| WTFCM Preferred Stock | USD 25.19 0.01 0.04% |
As of now, Wintrust Preferred Stock is very steady. Wintrust Financial Corp shows Sharpe Ratio of 0.0938, which attests that the company had a 0.0938% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Wintrust Financial Corp, which you can use to evaluate the volatility of the company. Please check out Wintrust Financial's Downside Deviation of 0.2599, market risk adjusted performance of 0.7124, and Mean Deviation of 0.189 to validate if the risk estimate we provide is consistent with the expected return of 0.026%. Key indicators related to Wintrust Financial's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Wintrust Financial Preferred Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Wintrust daily returns, and it is calculated using variance and standard deviation. We also use Wintrust's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Wintrust Financial volatility.
Wintrust |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Wintrust Financial can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Wintrust Financial at lower prices. For example, an investor can purchase Wintrust stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Wintrust Financial's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Wintrust Preferred Stock
| 0.73 | AX | Axos Financial | PairCorr |
| 0.72 | BY | Byline Bancorp Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.73 | PB | Prosperity Bancshares Fiscal Year End 22nd of January 2025 | PairCorr |
| 0.79 | RF | Regions Financial Fiscal Year End 17th of January 2025 | PairCorr |
| 0.66 | VBFC | Village Bank | PairCorr |
Moving against Wintrust Preferred Stock
| 0.76 | TFC-PO | Truist Financial | PairCorr |
| 0.76 | CFG-PE | Citizens Financial | PairCorr |
| 0.75 | TFC-PR | Truist Financial | PairCorr |
| 0.48 | WF | Woori Financial Group | PairCorr |
| 0.4 | KEY-PI | KeyCorp | PairCorr |
| 0.33 | NU | Nu Holdings | PairCorr |
Wintrust Financial Market Sensitivity And Downside Risk
Wintrust Financial's beta coefficient measures the volatility of Wintrust preferred stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Wintrust preferred stock's returns against your selected market. In other words, Wintrust Financial's beta of 0.0313 provides an investor with an approximation of how much risk Wintrust Financial preferred stock can potentially add to one of your existing portfolios. Wintrust Financial Corp exhibits very low volatility with skewness of 0.64 and kurtosis of 2.15. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wintrust Financial's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Wintrust Financial's preferred stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Wintrust Financial Corp Demand TrendCheck current 90 days Wintrust Financial correlation with market (Dow Jones Industrial)Wintrust Beta |
Wintrust standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.28 |
It is essential to understand the difference between upside risk (as represented by Wintrust Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Wintrust Financial's daily returns or price. Since the actual investment returns on holding a position in wintrust preferred stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Wintrust Financial.
Wintrust Financial Corp Preferred Stock Volatility Analysis
Volatility refers to the frequency at which Wintrust Financial preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Wintrust Financial's price changes. Investors will then calculate the volatility of Wintrust Financial's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Wintrust Financial's volatility:
Historical Volatility
This type of preferred stock volatility measures Wintrust Financial's fluctuations based on previous trends. It's commonly used to predict Wintrust Financial's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Wintrust Financial's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Wintrust Financial's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Wintrust Financial Corp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Wintrust Financial Projected Return Density Against Market
Assuming the 90 days horizon Wintrust Financial has a beta of 0.0313 . This entails as returns on the market go up, Wintrust Financial average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Wintrust Financial Corp will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Wintrust Financial or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Wintrust Financial's price will be affected by overall preferred stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Wintrust preferred stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Wintrust Financial Corp has an alpha of 0.0192, implying that it can generate a 0.0192 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Wintrust Financial Price Volatility?
Several factors can influence a preferred stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Wintrust Financial Preferred Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Wintrust Financial is 1066.01. The daily returns are distributed with a variance of 0.08 and standard deviation of 0.28. The mean deviation of Wintrust Financial Corp is currently at 0.19. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.02 | |
β | Beta against Dow Jones | 0.03 | |
σ | Overall volatility | 0.28 | |
Ir | Information ratio | -0.25 |
Wintrust Financial Preferred Stock Return Volatility
Wintrust Financial historical daily return volatility represents how much of Wintrust Financial preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm shows 0.2774% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7298% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Wintrust Financial Volatility
Volatility is a rate at which the price of Wintrust Financial or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Wintrust Financial may increase or decrease. In other words, similar to Wintrust's beta indicator, it measures the risk of Wintrust Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Wintrust Financial fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Wintrust Financial Corporation operates as a financial holding company. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois. Wintrust Financial operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 52 people.
Wintrust Financial's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Wintrust Preferred Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Wintrust Financial's price varies over time.
3 ways to utilize Wintrust Financial's volatility to invest better
Higher Wintrust Financial's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Wintrust Financial Corp preferred stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Wintrust Financial Corp preferred stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Wintrust Financial Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Wintrust Financial's preferred stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Wintrust Financial's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Wintrust Financial Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.73 and is 2.61 times more volatile than Wintrust Financial Corp. Compared to the overall equity markets, volatility of historical daily returns of Wintrust Financial Corp is lower than 2 percent of all global equities and portfolios over the last 90 days. You can use Wintrust Financial Corp to protect your portfolios against small market fluctuations. The preferred stock experiences a normal downward trend and little activity. Check odds of Wintrust Financial to be traded at $24.94 in 90 days.Significant diversification
The correlation between Wintrust Financial Corp and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Wintrust Financial Corp and DJI in the same portfolio, assuming nothing else is changed.
Wintrust Financial Additional Risk Indicators
The analysis of Wintrust Financial's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Wintrust Financial's investment and either accepting that risk or mitigating it. Along with some common measures of Wintrust Financial preferred stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0678 | |||
| Market Risk Adjusted Performance | 0.7124 | |||
| Mean Deviation | 0.189 | |||
| Semi Deviation | 0.1131 | |||
| Downside Deviation | 0.2599 | |||
| Coefficient Of Variation | 862.32 | |||
| Standard Deviation | 0.2758 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Wintrust Financial Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Wintrust Financial as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Wintrust Financial's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Wintrust Financial's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Wintrust Financial Corp.
Other Information on Investing in Wintrust Preferred Stock
Wintrust Financial financial ratios help investors to determine whether Wintrust Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Wintrust with respect to the benefits of owning Wintrust Financial security.