VLY vs WAL: Correlation
How closely do Valley National Bancorp (VLY) and Western Alliance Bancorporation (WAL) trade together? Their weekly returns over three years give a correlation of 0.83, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VLY and WAL?
Across a 3-year window, the weekly returns of VLY and WAL correlate at 0.83, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.80 over 1 year against 0.83 over 3. Stretching to 5 years gives 0.73, with an annualized covariance of 1074.5 %².
WAL is one of the assets that tracks VLY most closely: it ranks #3 out of the 17 assets we track against VLY. Their recent paths diverged sharply: over the last 12 months VLY outperformed by 47.2 percentage points (+37.9% for VLY against -9.3% for WAL).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
VLY vs WAL: side by side
| VLY (Valley National Bancorp) | WAL (Western Alliance Bancorporation) | |
|---|---|---|
| 1-year return | +37.9% | -9.3% |
| 5-year return | +32.9% | -9.7% |
| Volatility (ann.) | 32.8% | 39.5% |
| Beta vs S&P 500 | 0.93 | 1.51 |
| Max drawdown (3Y) | -39.5% | -36.0% |
| Market cap | $7.7B | $8.6B |
| P/E (trailing) | 11.9 | 9.0 |
| Dividend yield | 3.12% | 2.06% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VLY | WAL |
|---|---|---|
| 2022 | -14.6% | -43.7% |
| 2023 | +0.7% | +14.1% |
| 2024 | -11.9% | +29.7% |
| 2025 | +34.8% | +2.5% |
| 2026 | +21.5% | -4.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VLY and WAL good diversifiers for each other?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between VLY and WAL?
Using weekly returns as of 2026-08-27: 0.83 over 3 years, with 0.80 over the last year and 0.73 over 5 years.
Is WAL a good diversifier for VLY?
Not really. At 0.83, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.83 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: VLY correlations · WAL correlations
