Correlation Between Enterprise Financial and WSFS Financial
Can any of the company-specific risk be diversified away by investing in both Enterprise Financial and WSFS 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 Enterprise Financial and WSFS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enterprise Financial Services and WSFS Financial, you can compare the effects of market volatilities on Enterprise Financial and WSFS 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 Enterprise Financial with a short position of WSFS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enterprise Financial and WSFS Financial.
Diversification Opportunities for Enterprise Financial and WSFS Financial
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Enterprise and WSFS is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise Financial Services and WSFS Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WSFS Financial and Enterprise 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 Enterprise Financial Services are associated (or correlated) with WSFS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WSFS Financial has no effect on the direction of Enterprise Financial i.e., Enterprise Financial and WSFS Financial go up and down completely randomly.
Pair Corralation between Enterprise Financial and WSFS Financial
Given the investment horizon of 90 days Enterprise Financial Services is expected to generate 0.85 times more return on investment than WSFS Financial. However, Enterprise Financial Services is 1.17 times less risky than WSFS Financial. It trades about 0.16 of its potential returns per unit of risk. WSFS Financial is currently generating about 0.12 per unit of risk. If you would invest 5,407 in Enterprise Financial Services on April 16, 2025 and sell it today you would earn a total of 447.00 from holding Enterprise Financial Services or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enterprise Financial Services vs. WSFS Financial
Performance |
| Timeline |
| Enterprise Financial |
| WSFS Financial |
Enterprise Financial and WSFS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enterprise Financial and WSFS Financial
The main advantage of trading using opposite Enterprise Financial and WSFS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enterprise Financial position performs unexpectedly, WSFS 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 WSFS Financial will offset losses from the drop in WSFS Financial's long position.| Enterprise Financial vs. Community West Bancshares | Enterprise Financial vs. First Northwest Bancorp | Enterprise Financial vs. Civista Bancshares | Enterprise Financial vs. Finward Bancorp |
| WSFS Financial vs. Univest Pennsylvania | WSFS Financial vs. Waterstone Financial | WSFS Financial vs. Mid Penn Bancorp | WSFS Financial vs. ST Bancorp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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