Correlation Between WSFS Financial and IF Bancorp

Can any of the company-specific risk be diversified away by investing in both WSFS Financial and IF 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 IF 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 IF Bancorp, you can compare the effects of market volatilities on WSFS Financial and IF 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 IF Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of WSFS Financial and IF Bancorp.

Diversification Opportunities for WSFS Financial and IF Bancorp

0.32

Correlation Coefficient

WSFS Financial  IF Bancorp

Weak diversification

The 3 months correlation between WSFS and IROQ is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding WSFS Financial and IF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IF 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 IF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IF Bancorp has no effect on the direction of WSFS Financial i.e., WSFS Financial and IF Bancorp go up and down completely randomly.

Pair Corralation between WSFS Financial and IF Bancorp

Given the investment horizon of 90 days WSFS Financial is expected to generate 1.45 times less return on investment than IF Bancorp. But when comparing it to its historical volatility, WSFS Financial is 1.16 times less risky than IF Bancorp. It trades about 0.03 of its potential returns per unit of risk. IF Bancorp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,423  in IF Bancorp on May 16, 2025 and sell it today you would earn a total of  82.00  from holding IF Bancorp or generate 3.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	86.89%
Values	Daily Returns

WSFS Financial  vs.  IF Bancorp

WSFS Financial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WSFS Financial are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, WSFS Financial is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

IF Bancorp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in IF Bancorp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, IF Bancorp is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with WSFS Financial and IF Bancorp

The main advantage of trading using opposite WSFS Financial and IF Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WSFS Financial position performs unexpectedly, IF 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 IF Bancorp will offset losses from the drop in IF Bancorp's long position.

The idea behind WSFS Financial and IF Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.