Correlation Between Hemisphere Energy and WSFS Financial
Can any of the company-specific risk be diversified away by investing in both Hemisphere Energy 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 Hemisphere Energy and WSFS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hemisphere Energy and WSFS Financial, you can compare the effects of market volatilities on Hemisphere Energy 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 Hemisphere Energy with a short position of WSFS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hemisphere Energy and WSFS Financial.
Diversification Opportunities for Hemisphere Energy and WSFS Financial
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hemisphere and WSFS is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hemisphere Energy and WSFS Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WSFS Financial and Hemisphere Energy 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 Hemisphere Energy 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 Hemisphere Energy i.e., Hemisphere Energy and WSFS Financial go up and down completely randomly.
Pair Corralation between Hemisphere Energy and WSFS Financial
Assuming the 90 days horizon Hemisphere Energy is expected to generate 1.55 times more return on investment than WSFS Financial. However, Hemisphere Energy is 1.55 times more volatile than WSFS Financial. It trades about 0.01 of its potential returns per unit of risk. WSFS Financial is currently generating about -0.01 per unit of risk. If you would invest 142.00 in Hemisphere Energy on August 31, 2025 and sell it today you would lose (1.00) from holding Hemisphere Energy or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hemisphere Energy vs. WSFS Financial
Performance |
| Timeline |
| Hemisphere Energy |
| WSFS Financial |
Hemisphere Energy and WSFS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hemisphere Energy and WSFS Financial
The main advantage of trading using opposite Hemisphere Energy and WSFS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hemisphere Energy 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.| Hemisphere Energy vs. Neuberger Berman Small | Hemisphere Energy vs. Sumitomo Corp ADR | Hemisphere Energy vs. Beazer Homes USA | Hemisphere Energy vs. Vanguard Market Neutral |
| WSFS Financial vs. Juma Technology Corp | WSFS Financial vs. Zijin Mining Group | WSFS Financial vs. DXC Technology Co | WSFS Financial vs. China Tontine Wines |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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