Correlation Between Peapack Gladstone and FirstSun Capital

Can any of the company-specific risk be diversified away by investing in both Peapack Gladstone and FirstSun Capital 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 FirstSun Capital 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 FirstSun Capital Bancorp, you can compare the effects of market volatilities on Peapack Gladstone and FirstSun Capital 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 FirstSun Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peapack Gladstone and FirstSun Capital.

Diversification Opportunities for Peapack Gladstone and FirstSun Capital

0.7

Correlation Coefficient

Peapack Gladstone  FirstSun Capital

Poor diversification

The 3 months correlation between Peapack and FirstSun is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Peapack Gladstone Financial and FirstSun Capital Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstSun Capital Bancorp 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 FirstSun Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstSun Capital Bancorp has no effect on the direction of Peapack Gladstone i.e., Peapack Gladstone and FirstSun Capital go up and down completely randomly.

Pair Corralation between Peapack Gladstone and FirstSun Capital

Considering the 90-day investment horizon Peapack Gladstone Financial is expected to generate 0.8 times more return on investment than FirstSun Capital. However, Peapack Gladstone Financial is 1.26 times less risky than FirstSun Capital. It trades about -0.03 of its potential returns per unit of risk. FirstSun Capital Bancorp is currently generating about -0.08 per unit of risk. If you would invest  2,700  in Peapack Gladstone Financial on August 21, 2025 and sell it today you would lose (170.00) from holding Peapack Gladstone Financial or give up 6.3% of portfolio value over 90 days.

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

Peapack Gladstone Financial  vs.  FirstSun Capital Bancorp

Peapack Gladstone

Risk-Adjusted Performance

Weakest

Over the last 90 days Peapack Gladstone Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Peapack Gladstone is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

FirstSun Capital Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days FirstSun Capital Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Peapack Gladstone and FirstSun Capital

The main advantage of trading using opposite Peapack Gladstone and FirstSun Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peapack Gladstone position performs unexpectedly, FirstSun Capital 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 FirstSun Capital will offset losses from the drop in FirstSun Capital's long position.

The idea behind Peapack Gladstone Financial and FirstSun Capital Bancorp 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.