Correlation Between Peapack Gladstone and CullenFrost Bankers
Can any of the company-specific risk be diversified away by investing in both Peapack Gladstone and CullenFrost Bankers 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 CullenFrost Bankers 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 CullenFrost Bankers, you can compare the effects of market volatilities on Peapack Gladstone and CullenFrost Bankers 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 CullenFrost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peapack Gladstone and CullenFrost Bankers.
Diversification Opportunities for Peapack Gladstone and CullenFrost Bankers
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peapack and CullenFrost is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Peapack Gladstone Financial and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CullenFrost Bankers 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 CullenFrost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CullenFrost Bankers has no effect on the direction of Peapack Gladstone i.e., Peapack Gladstone and CullenFrost Bankers go up and down completely randomly.
Pair Corralation between Peapack Gladstone and CullenFrost Bankers
Considering the 90-day investment horizon Peapack Gladstone Financial is expected to under-perform the CullenFrost Bankers. In addition to that, Peapack Gladstone is 1.51 times more volatile than CullenFrost Bankers. It trades about -0.03 of its total potential returns per unit of risk. CullenFrost Bankers is currently generating about 0.02 per unit of volatility. If you would invest 12,445 in CullenFrost Bankers on August 13, 2025 and sell it today you would earn a total of 128.00 from holding CullenFrost Bankers or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peapack Gladstone Financial vs. CullenFrost Bankers
Performance |
| Timeline |
| Peapack Gladstone |
| CullenFrost Bankers |
Peapack Gladstone and CullenFrost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peapack Gladstone and CullenFrost Bankers
The main advantage of trading using opposite Peapack Gladstone and CullenFrost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peapack Gladstone position performs unexpectedly, CullenFrost Bankers 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 CullenFrost Bankers will offset losses from the drop in CullenFrost Bankers' long position.| Peapack Gladstone vs. Peoples Fin | Peapack Gladstone vs. Red River Bancshares | Peapack Gladstone vs. Unity Bancorp | Peapack Gladstone vs. Northfield Bancorp |
| CullenFrost Bankers vs. Old National Bancorp | CullenFrost Bankers vs. UMB Financial | CullenFrost Bankers vs. Popular | CullenFrost Bankers vs. Commerce 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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