Lakeland Financial Corporation (LKFN) vs. WSFS Financial Corporation (WSFS)
Resulting Gross Profit of $494.63 in 14 calendar days on $10,000/leg. That’s 4.9% on nominal leg value and approx. 25% return on CFD margin equity.
LKFN is a small bank holding company offering consumer banking and wealth management services to retail customers and is based in Warsaw, Indiana. It specialises in real estate and agribusiness loans. The company operates 49 branch offices in North and Central Indiana.
Closing Share Price (LKFN:NASDAQ) as of 29 January 2018: $48.42
LKFN Valuation Measures (Source: Yahoo! Finance)
| Market Cap (intraday) 5 | 1.21B |
| Enterprise Value 3 | 1.22B |
| Trailing P/E | 21.71 |
| Forward P/E 1 | 15.32 |
| PEG Ratio (5 yr expected) 1 | 1.64 |
| Price/Sales (ttm) | 7.17 |
| Price/Book (mrq) | 2.59 |
| Enterprise Value/Revenue 3 | 7.20 |
| Enterprise Value/EBITDA 6 | N/A |
WSFS is a thrift holding company based in Wilmington, Delaware that offers similar services to consumers and specialises in real estate lending activities. The company operates 77 branch offices, principally in Delaware and Pennsylvania.
Closing Share Price (WSFS:NASDAQ) as of 29 January 2018: $51.70
WSFS Valuation Measures (Source: Yahoo! Finance)
| Market Cap (intraday) 5 | 1.62B |
| Enterprise Value 3 | 1.84B |
| Trailing P/E | 28.10 |
| Forward P/E 1 | 13.79 |
| PEG Ratio (5 yr expected) 1 | 1.28 |
| Price/Sales (ttm) | 4.85 |
| Price/Book (mrq) | 2.21 |
| Enterprise Value/Revenue 3 | 5.50 |
| Enterprise Value/EBITDA 6 | N/A |
Current Three-Year Backtest Using PairTrade Finder PRO Top 30 Settings:
9 trades in 3 years. Avg. Correlation 80%, Cointegration 0.85, CAGR% 10.0%, Max DD % 6.94%, Percent of Winning Trades 100%, Avg. Net Profit per Trade $367.86. Average Days in Trade 33 days. Very smooth equity curve. Good, non-trending ratio line.
LKFN/WSFS Relative Performance Last 12 Months
Entry Trade Signal EOD 9 January 2018 at +2.01 sd:
Short Leg: Sell Short 203 shares of LKFN at $49.13 = $9,974.41
Long Leg: Buy Long 209 shares of WSFS at $47.82 = $9,995.43
Check News:
LKFN – No fundamental value affecting news in the 10 days prior to the EOD 9 January 2018 Entry Signal.
WSFS – No fundamental value affecting news in the 10 days prior to the EOD 9 January 2018 Entry Signal.
Check Earnings Announcements & Dividends:
LKFN:
Earnings call in 15 days from Entry Trade Signal.
Next Dividend Date is 5 Feb 2018.
WSFS:
Earnings release within 13 days of Entry Signal.
Next dividend date 22 Feb 2018.
Pair Charts Covering Trade Period:
No ratio breakout at time of Entry Signal, hitting a yearly max (good) but not way outside.
Non-trending ratio line for last 12 months with lots of back and forth (good). Signal occurring near a 12 month resistance line.
Strong correlation for the last 90 days.
RSI of Ratio at time of trade call at 60. Not an extreme.
Recent Volatility for Position Sizing Purposes:
Average to low volatility over last 12 months (about 1.4%) and decreasing to current low volatility (0.94%). Suggests a full position size.
RESULT OF TRADE
Exit Trade Signal after crossing 0.0 sd:
Short Leg: Buy to Close 203 shares of LKFN at $50.48, Gross Result = ($273.03)
Long Leg: Sell to Close 209 shares of WSFS at $51.75, Gross Result = $820.32
Gross Result: $547.27, less commissions and slippage estimate and rounding errors of ($52.66) = $494.63
Resulting Gross Profit of $494.63 in 14 calendar days on $10,000/leg. That’s 4.9% on nominal leg value and approx. 25% return on CFD margined equity.
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