Correlation Between WSFS Financial and Western New

Can any of the company-specific risk be diversified away by investing in both WSFS Financial and Western New 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 Western New into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WSFS Financial and Western New England, you can compare the effects of market volatilities on WSFS Financial and Western New 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 Western New. Check out your portfolio center. Please also check ongoing floating volatility patterns of WSFS Financial and Western New.

Diversification Opportunities for WSFS Financial and Western New

0.42

Correlation Coefficient

WSFS Financial  Western New

Very weak diversification

The 3 months correlation between WSFS and Western is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding WSFS Financial and Western New England in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western New England 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 Western New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western New England has no effect on the direction of WSFS Financial i.e., WSFS Financial and Western New go up and down completely randomly.

Pair Corralation between WSFS Financial and Western New

Given the investment horizon of 90 days WSFS Financial is expected to generate 20.93 times less return on investment than Western New. But when comparing it to its historical volatility, WSFS Financial is 1.65 times less risky than Western New. It trades about 0.01 of its potential returns per unit of risk. Western New England is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  939.00  in Western New England on May 19, 2025 and sell it today you would earn a total of  226.00  from holding Western New England or generate 24.07% 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.  Western New England

WSFS Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days WSFS Financial has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Western New England

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Western New England are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady technical and fundamental indicators, Western New sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WSFS Financial and Western New

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

The idea behind WSFS Financial and Western New England 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.