Correlation Between Peapack Gladstone and Lakeland Financial
Can any of the company-specific risk be diversified away by investing in both Peapack Gladstone and Lakeland Financial 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 Lakeland Financial 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 Lakeland Financial, you can compare the effects of market volatilities on Peapack Gladstone and Lakeland Financial 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 Lakeland Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peapack Gladstone and Lakeland Financial.
Diversification Opportunities for Peapack Gladstone and Lakeland Financial
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Peapack and Lakeland is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Peapack Gladstone Financial and Lakeland Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Financial 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 Lakeland Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Financial has no effect on the direction of Peapack Gladstone i.e., Peapack Gladstone and Lakeland Financial go up and down completely randomly.
Pair Corralation between Peapack Gladstone and Lakeland Financial
Considering the 90-day investment horizon Peapack Gladstone Financial is expected to generate 1.3 times more return on investment than Lakeland Financial. However, Peapack Gladstone is 1.3 times more volatile than Lakeland Financial. It trades about -0.01 of its potential returns per unit of risk. Lakeland Financial is currently generating about -0.06 per unit of risk. If you would invest 2,671 in Peapack Gladstone Financial on August 19, 2025 and sell it today you would lose (71.00) from holding Peapack Gladstone Financial or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peapack Gladstone Financial vs. Lakeland Financial
Performance |
| Timeline |
| Peapack Gladstone |
| Lakeland Financial |
Peapack Gladstone and Lakeland Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peapack Gladstone and Lakeland Financial
The main advantage of trading using opposite Peapack Gladstone and Lakeland Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peapack Gladstone position performs unexpectedly, Lakeland Financial 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 Lakeland Financial will offset losses from the drop in Lakeland Financial's long position.| Peapack Gladstone vs. FirstSun Capital Bancorp | Peapack Gladstone vs. CullenFrost Bankers | Peapack Gladstone vs. Preferred Bank | Peapack Gladstone vs. Triumph Financial, |
| Lakeland Financial vs. German American Bancorp | Lakeland Financial vs. TriCo Bancshares | Lakeland Financial vs. Stellar Bancorp, | Lakeland Financial vs. 1st Source |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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