Correlation Between WVS Financial and Seneca Financial

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

By analyzing existing cross correlation between WVS Financial Corp and Seneca Financial Corp, you can compare the effects of market volatilities on WVS Financial and Seneca 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 WVS Financial with a short position of Seneca Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WVS Financial and Seneca Financial.

Diversification Opportunities for WVS Financial and Seneca Financial

-0.57

Correlation Coefficient

WVS Financial  Seneca Financial

Excellent diversification

The 3 months correlation between WVS and Seneca is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding WVS Financial Corp and Seneca Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seneca Financial Corp and WVS 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 WVS Financial Corp are associated (or correlated) with Seneca Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seneca Financial Corp has no effect on the direction of WVS Financial i.e., WVS Financial and Seneca Financial go up and down completely randomly.

Pair Corralation between WVS Financial and Seneca Financial

Given the investment horizon of 90 days WVS Financial Corp is expected to generate 0.39 times more return on investment than Seneca Financial. However, WVS Financial Corp is 2.56 times less risky than Seneca Financial. It trades about 0.07 of its potential returns per unit of risk. Seneca Financial Corp is currently generating about -0.06 per unit of risk. If you would invest  1,211  in WVS Financial Corp on August 19, 2025 and sell it today you would earn a total of  50.00  from holding WVS Financial Corp or generate 4.13% return on investment over 90 days.

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

WVS Financial Corp  vs.  Seneca Financial Corp

WVS Financial Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in WVS Financial Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, WVS Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Seneca Financial Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Seneca Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with WVS Financial and Seneca Financial

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

The idea behind WVS Financial Corp and Seneca Financial Corp 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.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.