Correlation Between Luther Burbank and Peapack Gladstone
Can any of the company-specific risk be diversified away by investing in both Luther Burbank and Peapack Gladstone 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 Luther Burbank and Peapack Gladstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luther Burbank and Peapack Gladstone Financial, you can compare the effects of market volatilities on Luther Burbank and Peapack Gladstone 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 Luther Burbank with a short position of Peapack Gladstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luther Burbank and Peapack Gladstone.
Diversification Opportunities for Luther Burbank and Peapack Gladstone
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luther and Peapack is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luther Burbank and Peapack Gladstone Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peapack Gladstone and Luther Burbank 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 Luther Burbank are associated (or correlated) with Peapack Gladstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peapack Gladstone has no effect on the direction of Luther Burbank i.e., Luther Burbank and Peapack Gladstone go up and down completely randomly.
Pair Corralation between Luther Burbank and Peapack Gladstone
If you would invest (100.00) in Luther Burbank on December 2, 2024 and sell it today you would earn a total of 100.00 from holding Luther Burbank or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Luther Burbank vs. Peapack Gladstone Financial
Performance |
Timeline |
Luther Burbank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Peapack Gladstone |
Luther Burbank and Peapack Gladstone Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luther Burbank and Peapack Gladstone
The main advantage of trading using opposite Luther Burbank and Peapack Gladstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luther Burbank position performs unexpectedly, Peapack Gladstone 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 Peapack Gladstone will offset losses from the drop in Peapack Gladstone's long position.Luther Burbank vs. First Community | Luther Burbank vs. Community West Bancshares | Luther Burbank vs. First Financial Northwest | Luther Burbank vs. First Northwest Bancorp |
Peapack Gladstone vs. Sound Financial Bancorp | Peapack Gladstone vs. Finward Bancorp | Peapack Gladstone vs. Franklin Financial Services | Peapack Gladstone vs. Community West Bancshares |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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