Correlation Analysis Between Dime Community and FARMERS MERCHANTS

This module allows you to analyze existing cross correlation between Dime Community Bancshares and FARMERS MERCHANTS BANCSHARES. You can compare the effects of market volatilities on Dime Community and FARMERS MERCHANTS 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 FARMERS MERCHANTS. See also your portfolio center. Please also check ongoing floating volatility patterns of Dime Community and FARMERS MERCHANTS.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

Dime Community Bancs  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Dime Community Bancshares are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Dime Community revealed solid returns over the last few months and may actually be approaching a breakup point.

Risk-Adjusted Performance

Over the last 30 days FARMERS MERCHANTS BANCSHARES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, FARMERS MERCHANTS is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Dime Community and FARMERS MERCHANTS Volatility Contrast

 Predicted Return Density 

Dime Community Bancshares Inc  vs.  FARMERS MERCHANTS BANCSHARES

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Dime Community Bancshares is expected to generate 1.6 times more return on investment than FARMERS MERCHANTS. However, Dime Community is 1.6 times more volatile than FARMERS MERCHANTS BANCSHARES. It trades about 0.19 of its potential returns per unit of risk. FARMERS MERCHANTS BANCSHARES is currently generating about -0.04 per unit of risk. If you would invest  1,866  in Dime Community Bancshares on September 23, 2019 and sell it today you would earn a total of  360.00  from holding Dime Community Bancshares or generate 19.29% return on investment over 30 days.

Pair Corralation between Dime Community and FARMERS MERCHANTS

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Dime Community and FARMERS MERCHANTS

Dime Community Bancshares Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Dime Community Bancshares Inc and FARMERS MERCHANTS BANCSHARES in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on FARMERS MERCHANTS 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 FARMERS MERCHANTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FARMERS MERCHANTS has no effect on the direction of Dime Community i.e. Dime Community and FARMERS MERCHANTS go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.