Correlation Between Eagle Financial and Dime Community
Can any of the company-specific risk be diversified away by investing in both Eagle Financial and Dime Community 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 Eagle Financial and Dime Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Financial Bancorp and Dime Community Bancshares, you can compare the effects of market volatilities on Eagle Financial and Dime Community 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 Eagle Financial with a short position of Dime Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and Dime Community.
Diversification Opportunities for Eagle Financial and Dime Community
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Dime is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Bancorp and Dime Community Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dime Community Bancshares and Eagle Financial 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 Eagle Financial Bancorp are associated (or correlated) with Dime Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dime Community Bancshares has no effect on the direction of Eagle Financial i.e., Eagle Financial and Dime Community go up and down completely randomly.
Pair Corralation between Eagle Financial and Dime Community
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 Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Eagle Financial Bancorp vs. Dime Community Bancshares
Performance |
| Timeline |
| Eagle Financial Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dime Community Bancshares |
Eagle Financial and Dime Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Financial and Dime Community
The main advantage of trading using opposite Eagle Financial and Dime Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial position performs unexpectedly, Dime Community 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 Dime Community will offset losses from the drop in Dime Community's long position.| Eagle Financial vs. Enterprise Financial Services | Eagle Financial vs. TC Bancshares | Eagle Financial vs. Pioneer Bancorp | Eagle Financial vs. LCNB Corporation |
| Dime Community vs. Peapack Gladstone Financial | Dime Community vs. Northfield Bancorp | Dime Community vs. Great Southern Bancorp | Dime Community vs. Heritage Financial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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