Correlation Between WSFS Financial and United Bancorp

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

Diversification Opportunities for WSFS Financial and United Bancorp

0.45

Correlation Coefficient

WSFS Financial  United Bancorp

Very weak diversification

The 3 months correlation between WSFS and United is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding WSFS Financial and United Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United 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 United Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bancorp has no effect on the direction of WSFS Financial i.e., WSFS Financial and United Bancorp go up and down completely randomly.

Pair Corralation between WSFS Financial and United Bancorp

Given the investment horizon of 90 days WSFS Financial is expected to generate 3.51 times less return on investment than United Bancorp. But when comparing it to its historical volatility, WSFS Financial is 1.26 times less risky than United Bancorp. It trades about 0.03 of its potential returns per unit of risk. United Bancorp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,278  in United Bancorp on May 16, 2025 and sell it today you would earn a total of  142.00  from holding United Bancorp or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

WSFS Financial  vs.  United 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.

United Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in United Bancorp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, United Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with WSFS Financial and United Bancorp

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

The idea behind WSFS Financial and United 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.