Correlation Between Peapack Gladstone and WSFS Financial

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

Diversification Opportunities for Peapack Gladstone and WSFS Financial

0.55

Correlation Coefficient

Peapack Gladstone  WSFS Financial

Very weak diversification

The 3 months correlation between Peapack and WSFS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Peapack Gladstone Financial and WSFS Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WSFS 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 WSFS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WSFS Financial has no effect on the direction of Peapack Gladstone i.e., Peapack Gladstone and WSFS Financial go up and down completely randomly.

Pair Corralation between Peapack Gladstone and WSFS Financial

Considering the 90-day investment horizon Peapack Gladstone is expected to generate 2.36 times less return on investment than WSFS Financial. In addition to that, Peapack Gladstone is 1.35 times more volatile than WSFS Financial. It trades about 0.02 of its total potential returns per unit of risk. WSFS Financial is currently generating about 0.07 per unit of volatility. If you would invest  5,386  in WSFS Financial on May 27, 2025 and sell it today you would earn a total of  349.00  from holding WSFS Financial or generate 6.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Peapack Gladstone Financial  vs.  WSFS Financial

Peapack Gladstone

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Peapack Gladstone Financial are ranked lower than 1 (%) 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.

WSFS Financial

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in WSFS Financial are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, WSFS Financial may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Peapack Gladstone and WSFS Financial

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

The idea behind Peapack Gladstone Financial and WSFS 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 Stocks Directory module to find actively traded stocks across global markets.