Two Equities Correlation Analysis
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DCOM
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Dime Community and NYSE Composite
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dime and NYSE is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dime Community Bancshares and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Dime Community 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 Dime Community Bancshares are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Dime Community i.e., Dime Community and NYSE Composite go up and down completely randomly.
Pair Corralation between Dime Community and NYSE Composite
Given the investment horizon of 90 days Dime Community Bancshares is expected to generate 3.86 times more return on investment than NYSE Composite. However, Dime Community is 3.86 times more volatile than NYSE Composite. It trades about 0.11 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 1,832 in Dime Community Bancshares on January 25, 2024 and sell it today you would earn a total of 111.00 from holding Dime Community Bancshares or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dime Community Bancshares vs. NYSE Composite
Performance |
| Timeline |
Dime Community and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Dime Community Bancshares
Pair trading matchups for Dime Community
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Dime Community and NYSE Composite
The main advantage of trading using opposite Dime Community and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dime Community position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Dime Community vs. Peapack Gladstone Financial | Dime Community vs. Northfield Bancorp | Dime Community vs. Great Southern Bancorp | Dime Community vs. Heritage Financial |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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