Correlation Between WSFS Financial and Northfield Bancorp
Can any of the company-specific risk be diversified away by investing in both WSFS Financial and Northfield Bancorp 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 WSFS Financial and Northfield Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WSFS Financial and Northfield Bancorp, you can compare the effects of market volatilities on WSFS Financial and Northfield Bancorp 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 WSFS Financial with a short position of Northfield Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of WSFS Financial and Northfield Bancorp.
Diversification Opportunities for WSFS Financial and Northfield Bancorp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between WSFS and Northfield is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding WSFS Financial and Northfield Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northfield Bancorp and WSFS 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 WSFS Financial are associated (or correlated) with Northfield Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northfield Bancorp has no effect on the direction of WSFS Financial i.e., WSFS Financial and Northfield Bancorp go up and down completely randomly.
Pair Corralation between WSFS Financial and Northfield Bancorp
Given the investment horizon of 90 days WSFS Financial is expected to generate 0.78 times more return on investment than Northfield Bancorp. However, WSFS Financial is 1.29 times less risky than Northfield Bancorp. It trades about 0.11 of its potential returns per unit of risk. Northfield Bancorp is currently generating about 0.03 per unit of risk. If you would invest 5,298 in WSFS Financial on June 3, 2025 and sell it today you would earn a total of 531.00 from holding WSFS Financial or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WSFS Financial vs. Northfield Bancorp
Performance |
| Timeline |
| WSFS Financial |
| Northfield Bancorp |
WSFS Financial and Northfield Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WSFS Financial and Northfield Bancorp
The main advantage of trading using opposite WSFS Financial and Northfield Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WSFS Financial position performs unexpectedly, Northfield Bancorp 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 Northfield Bancorp will offset losses from the drop in Northfield Bancorp's long position.| WSFS Financial vs. Univest Pennsylvania | WSFS Financial vs. Waterstone Financial | WSFS Financial vs. Mid Penn Bancorp | WSFS Financial vs. ST Bancorp |
| Northfield Bancorp vs. National Bank Holdings | Northfield Bancorp vs. Community Bank System | Northfield Bancorp vs. Home Bancorp | Northfield Bancorp 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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