Correlation Between VersaBank and WSFS Financial
Can any of the company-specific risk be diversified away by investing in both VersaBank 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 VersaBank and WSFS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VersaBank and WSFS Financial, you can compare the effects of market volatilities on VersaBank 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 VersaBank with a short position of WSFS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of VersaBank and WSFS Financial.
Diversification Opportunities for VersaBank and WSFS Financial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VersaBank and WSFS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding VersaBank and WSFS Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WSFS Financial and VersaBank 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 VersaBank 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 VersaBank i.e., VersaBank and WSFS Financial go up and down completely randomly.
Pair Corralation between VersaBank and WSFS Financial
Given the investment horizon of 90 days VersaBank is expected to generate 2.62 times less return on investment than WSFS Financial. In addition to that, VersaBank is 1.23 times more volatile than WSFS Financial. It trades about 0.07 of its total potential returns per unit of risk. WSFS Financial is currently generating about 0.22 per unit of volatility. If you would invest 4,752 in WSFS Financial on April 19, 2025 and sell it today you would earn a total of 1,117 from holding WSFS Financial or generate 23.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VersaBank vs. WSFS Financial
Performance |
| Timeline |
| VersaBank |
| WSFS Financial |
VersaBank and WSFS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VersaBank and WSFS Financial
The main advantage of trading using opposite VersaBank and WSFS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VersaBank 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.| VersaBank vs. US Century Bank | VersaBank vs. Western New England | VersaBank vs. Third Coast Bancshares | VersaBank vs. Tyra Biosciences |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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