Correlation Between Peapack Gladstone and Luther Burbank
Can any of the company-specific risk be diversified away by investing in both Peapack Gladstone and Luther Burbank 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 Peapack Gladstone and Luther Burbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peapack Gladstone Financial and Luther Burbank, you can compare the effects of market volatilities on Peapack Gladstone and Luther Burbank 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 Peapack Gladstone with a short position of Luther Burbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peapack Gladstone and Luther Burbank.
Diversification Opportunities for Peapack Gladstone and Luther Burbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peapack and Luther is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Peapack Gladstone Financial and Luther Burbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luther Burbank and Peapack Gladstone 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 Peapack Gladstone Financial are associated (or correlated) with Luther Burbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luther Burbank has no effect on the direction of Peapack Gladstone i.e., Peapack Gladstone and Luther Burbank go up and down completely randomly.
Pair Corralation between Peapack Gladstone and Luther Burbank
If you would invest (100.00) in Luther Burbank on December 28, 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 |
Peapack Gladstone Financial vs. Luther Burbank
Performance |
Timeline |
Peapack Gladstone |
Luther Burbank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Peapack Gladstone and Luther Burbank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Peapack Gladstone and Luther Burbank
The main advantage of trading using opposite Peapack Gladstone and Luther Burbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peapack Gladstone position performs unexpectedly, Luther Burbank 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 Luther Burbank will offset losses from the drop in Luther Burbank's long position.Peapack Gladstone vs. Sound Financial Bancorp | Peapack Gladstone vs. Finward Bancorp | Peapack Gladstone vs. Franklin Financial Services | Peapack Gladstone vs. Community West Bancshares |
Luther Burbank vs. First Community | Luther Burbank vs. Community West Bancshares | Luther Burbank vs. First Financial Northwest | Luther Burbank vs. First Northwest Bancorp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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