Correlation Between HV Bancorp and Peapack Gladstone
Can any of the company-specific risk be diversified away by investing in both HV Bancorp 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 HV Bancorp and Peapack Gladstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HV Bancorp and Peapack Gladstone Financial, you can compare the effects of market volatilities on HV Bancorp 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 HV Bancorp with a short position of Peapack Gladstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of HV Bancorp and Peapack Gladstone.
Diversification Opportunities for HV Bancorp and Peapack Gladstone
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HVBC and Peapack is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding HV Bancorp and Peapack Gladstone Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peapack Gladstone and HV Bancorp 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 HV Bancorp 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 HV Bancorp i.e., HV Bancorp and Peapack Gladstone go up and down completely randomly.
Pair Corralation between HV Bancorp and Peapack Gladstone
If you would invest 3,320 in Peapack Gladstone Financial on August 28, 2024 and sell it today you would earn a total of 369.00 from holding Peapack Gladstone Financial or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
HV Bancorp vs. Peapack Gladstone Financial
Performance |
| Timeline |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Peapack Gladstone |
HV Bancorp and Peapack Gladstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HV Bancorp and Peapack Gladstone
The main advantage of trading using opposite HV Bancorp and Peapack Gladstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HV Bancorp 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.| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore Bancorp |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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