Correlation Between ConnectOne Bancorp and Dime Community
Can any of the company-specific risk be diversified away by investing in both ConnectOne Bancorp 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 ConnectOne Bancorp and Dime Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConnectOne Bancorp and Dime Community Bancshares, you can compare the effects of market volatilities on ConnectOne Bancorp 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 ConnectOne Bancorp with a short position of Dime Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConnectOne Bancorp and Dime Community.
Diversification Opportunities for ConnectOne Bancorp and Dime Community
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ConnectOne and Dime is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne 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 ConnectOne Bancorp 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 ConnectOne 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 ConnectOne Bancorp i.e., ConnectOne Bancorp and Dime Community go up and down completely randomly.
Pair Corralation between ConnectOne Bancorp and Dime Community
Assuming the 90 days horizon ConnectOne Bancorp is expected to generate 1.14 times more return on investment than Dime Community. However, ConnectOne Bancorp is 1.14 times more volatile than Dime Community Bancshares. It trades about 0.03 of its potential returns per unit of risk. Dime Community Bancshares is currently generating about 0.03 per unit of risk. If you would invest 1,789 in ConnectOne Bancorp on August 31, 2024 and sell it today you would earn a total of 431.00 from holding ConnectOne Bancorp or generate 24.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConnectOne Bancorp vs. Dime Community Bancshares
Performance |
| Timeline |
| ConnectOne Bancorp |
| Dime Community Bancshares |
ConnectOne Bancorp and Dime Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConnectOne Bancorp and Dime Community
The main advantage of trading using opposite ConnectOne Bancorp and Dime Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConnectOne Bancorp 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.| ConnectOne Bancorp vs. KeyCorp | ConnectOne Bancorp vs. Regions Financial | ConnectOne Bancorp vs. US Bancorp | ConnectOne Bancorp vs. KeyCorp |
| Dime Community vs. First Citizens BancShares | Dime Community vs. Fifth Third Bancorp | Dime Community vs. OceanFirst Financial Corp | Dime Community vs. Fifth Third Bancorp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |