Correlation Between Dime Community and Premier Financial
Can any of the company-specific risk be diversified away by investing in both Dime Community and Premier 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 Dime Community and Premier Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dime Community Bancshares and Premier Financial Corp, you can compare the effects of market volatilities on Dime Community and Premier 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 Premier Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dime Community and Premier Financial.
Diversification Opportunities for Dime Community and Premier Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dime and Premier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dime Community Bancshares and Premier Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Financial Corp 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 Premier Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Financial Corp has no effect on the direction of Dime Community i.e., Dime Community and Premier Financial go up and down completely randomly.
Pair Corralation between Dime Community and Premier Financial
If you would invest (100.00) in Premier Financial Corp on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Premier Financial Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dime Community Bancshares vs. Premier Financial Corp
Performance |
| Timeline |
| Dime Community Bancshares |
| Premier Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dime Community and Premier Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dime Community and Premier Financial
The main advantage of trading using opposite Dime Community and Premier Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dime Community position performs unexpectedly, Premier 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 Premier Financial will offset losses from the drop in Premier Financial's long position.| Dime Community vs. Home Federal Bancorp | Dime Community vs. Community West Bancshares | Dime Community vs. First Financial Northwest | Dime Community vs. First Northwest Bancorp |
| Premier Financial vs. Calliditas Therapeutics | Premier Financial vs. Valneva SE ADR | Premier Financial vs. KLA Tencor | Premier Financial vs. Tscan Therapeutics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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