Correlation Analysis Between Dime Community and Axos Financial

This module allows you to analyze existing cross correlation between Dime Community Bancshares and Axos Financial. You can compare the effects of market volatilities on Dime Community and Axos 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 Dime Community with a short position of Axos Financial. See also your portfolio center. Please also check ongoing floating volatility patterns of Dime Community and Axos Financial.
Horizon     30 Days    Login   to change
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Comparative Performance

Dime Community Bancs  
00

Risk-Adjusted Performance

Over the last 30 days Dime Community Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Dime Community is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Axos Financial  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Axos Financial are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Inspite fairly weak basic indicators, Axos Financial may actually be approaching a critical reversion point that can send shares even higher in December 2019.

Dime Community and Axos Financial Volatility Contrast

 Predicted Return Density 
      Returns 

Dime Community Bancshares Inc  vs.  Axos Financial Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Dime Community Bancshares is expected to under-perform the Axos Financial. But the stock apears to be less risky and, when comparing its historical volatility, Dime Community Bancshares is 1.28 times less risky than Axos Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Axos Financial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,712  in Axos Financial on October 15, 2019 and sell it today you would earn a total of  179.00  from holding Axos Financial or generate 6.6% return on investment over 30 days.

Pair Corralation between Dime Community and Axos Financial

0.06
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Dime Community and Axos Financial

Dime Community Bancshares Inc diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Dime Community Bancshares Inc and Axos Financial Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Axos Financial 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 Axos Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axos Financial has no effect on the direction of Dime Community i.e. Dime Community and Axos Financial go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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