Correlation Between WSFS Financial and FB Financial
Can any of the company-specific risk be diversified away by investing in both WSFS Financial and FB 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 WSFS Financial and FB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WSFS Financial and FB Financial Corp, you can compare the effects of market volatilities on WSFS Financial and FB 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 WSFS Financial with a short position of FB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WSFS Financial and FB Financial.
Diversification Opportunities for WSFS Financial and FB Financial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WSFS and FBK is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding WSFS Financial and FB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FB Financial Corp 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 FB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FB Financial Corp has no effect on the direction of WSFS Financial i.e., WSFS Financial and FB Financial go up and down completely randomly.
Pair Corralation between WSFS Financial and FB Financial
Given the investment horizon of 90 days WSFS Financial is expected to generate 1.25 times more return on investment than FB Financial. However, WSFS Financial is 1.25 times more volatile than FB Financial Corp. It trades about 0.05 of its potential returns per unit of risk. FB Financial Corp is currently generating about -0.17 per unit of risk. If you would invest 5,370 in WSFS Financial on November 25, 2024 and sell it today you would earn a total of 94.00 from holding WSFS Financial or generate 1.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
WSFS Financial vs. FB Financial Corp
Performance |
Timeline |
WSFS Financial |
FB Financial Corp |
WSFS Financial and FB Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WSFS Financial and FB Financial
The main advantage of trading using opposite WSFS Financial and FB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WSFS Financial position performs unexpectedly, FB 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 FB Financial will offset losses from the drop in FB Financial's long position.WSFS Financial vs. Western New England | ||
WSFS Financial vs. Great Southern Bancorp | ||
WSFS Financial vs. First Financial | ||
WSFS Financial vs. Heritage Financial |
FB Financial vs. Home Bancorp | ||
FB Financial vs. First Business Financial | ||
FB Financial vs. LINKBANCORP | ||
FB Financial vs. Great Southern 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |