Correlation Between Forum Energy and Dime Community
Can any of the company-specific risk be diversified away by investing in both Forum Energy 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 Forum Energy and Dime Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Energy Technologies and Dime Community Bancshares, you can compare the effects of market volatilities on Forum Energy 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 Forum Energy with a short position of Dime Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Energy and Dime Community.
Diversification Opportunities for Forum Energy and Dime Community
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Forum and Dime is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Forum Energy Technologies 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 Forum Energy 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 Forum Energy Technologies 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 Forum Energy i.e., Forum Energy and Dime Community go up and down completely randomly.
Pair Corralation between Forum Energy and Dime Community
Considering the 90-day investment horizon Forum Energy Technologies is expected to generate 1.63 times more return on investment than Dime Community. However, Forum Energy is 1.63 times more volatile than Dime Community Bancshares. It trades about 0.08 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 2,645 in Forum Energy Technologies on August 29, 2025 and sell it today you would earn a total of 403.00 from holding Forum Energy Technologies or generate 15.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forum Energy Technologies vs. Dime Community Bancshares
Performance |
| Timeline |
| Forum Energy Technologies |
| Dime Community Bancshares |
Forum Energy and Dime Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Energy and Dime Community
The main advantage of trading using opposite Forum Energy and Dime Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Energy 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.| Forum Energy vs. EROAD Limited | Forum Energy vs. Strainsforpains | Forum Energy vs. C3 Metals | Forum Energy vs. Knight Transportation |
| Dime Community vs. Trio Tech International | Dime Community vs. Quality Online Education | Dime Community vs. Global E Online | Dime Community vs. Lamar Advertising |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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