Correlation Between ACNB and Peapack Gladstone

Can any of the company-specific risk be diversified away by investing in both ACNB 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 ACNB and Peapack Gladstone into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ACNB Corporation and Peapack Gladstone Financial, you can compare the effects of market volatilities on ACNB 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 ACNB with a short position of Peapack Gladstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACNB and Peapack Gladstone.

Diversification Opportunities for ACNB and Peapack Gladstone

0.69

Correlation Coefficient

ACNB  Peapack Gladstone

Poor diversification

The 3 months correlation between ACNB and Peapack is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ACNB Corp. and Peapack Gladstone Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peapack Gladstone and ACNB 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 ACNB Corporation 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 ACNB i.e., ACNB and Peapack Gladstone go up and down completely randomly.

Pair Corralation between ACNB and Peapack Gladstone

Given the investment horizon of 90 days ACNB Corporation is expected to generate 0.69 times more return on investment than Peapack Gladstone. However, ACNB Corporation is 1.44 times less risky than Peapack Gladstone. It trades about 0.06 of its potential returns per unit of risk. Peapack Gladstone Financial is currently generating about 0.04 per unit of risk. If you would invest  4,179  in ACNB Corporation on July 31, 2025 and sell it today you would earn a total of  231.00  from holding ACNB Corporation or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

ACNB Corp.  vs.  Peapack Gladstone Financial

ACNB

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ACNB Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ACNB is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Peapack Gladstone

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Peapack Gladstone Financial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Peapack Gladstone is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ACNB and Peapack Gladstone

The main advantage of trading using opposite ACNB and Peapack Gladstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACNB 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.

The idea behind ACNB Corporation and Peapack Gladstone Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.