Correlation Between Wealthsimple Shariah and Peapack Gladstone
Can any of the company-specific risk be diversified away by investing in both Wealthsimple Shariah 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 Wealthsimple Shariah and Peapack Gladstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wealthsimple Shariah World and Peapack Gladstone Financial, you can compare the effects of market volatilities on Wealthsimple Shariah 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 Wealthsimple Shariah with a short position of Peapack Gladstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wealthsimple Shariah and Peapack Gladstone.
Diversification Opportunities for Wealthsimple Shariah and Peapack Gladstone
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wealthsimple and Peapack is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wealthsimple Shariah World and Peapack Gladstone Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peapack Gladstone and Wealthsimple Shariah 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 Wealthsimple Shariah World 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 Wealthsimple Shariah i.e., Wealthsimple Shariah and Peapack Gladstone go up and down completely randomly.
Pair Corralation between Wealthsimple Shariah and Peapack Gladstone
Assuming the 90 days trading horizon Wealthsimple Shariah World is expected to generate 0.3 times more return on investment than Peapack Gladstone. However, Wealthsimple Shariah World is 3.3 times less risky than Peapack Gladstone. It trades about 0.02 of its potential returns per unit of risk. Peapack Gladstone Financial is currently generating about -0.07 per unit of risk. If you would invest 3,207 in Wealthsimple Shariah World on August 25, 2025 and sell it today you would earn a total of 20.00 from holding Wealthsimple Shariah World or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Wealthsimple Shariah World vs. Peapack Gladstone Financial
Performance |
| Timeline |
| Wealthsimple Shariah |
| Peapack Gladstone |
Wealthsimple Shariah and Peapack Gladstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wealthsimple Shariah and Peapack Gladstone
The main advantage of trading using opposite Wealthsimple Shariah and Peapack Gladstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wealthsimple Shariah 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.| Wealthsimple Shariah vs. Wealthsimple North America | Wealthsimple Shariah vs. Wealthsimple Developed Markets | Wealthsimple Shariah vs. Wealthsimple North American | Wealthsimple Shariah vs. NBI High Yield |
| Peapack Gladstone vs. Bar Harbor Bankshares | Peapack Gladstone vs. Thrivent High Yield | Peapack Gladstone vs. Morningstar Unconstrained Allocation | Peapack Gladstone vs. Via Renewables |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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