Correlation Between Genting Berhad and Dime Community

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Can any of the company-specific risk be diversified away by investing in both Genting Berhad 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 Genting Berhad and Dime Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genting Berhad and Dime Community Bancshares, you can compare the effects of market volatilities on Genting Berhad 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 Genting Berhad with a short position of Dime Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Berhad and Dime Community.

Diversification Opportunities for Genting Berhad and Dime Community

-0.79
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Genting and Dime is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Genting Berhad 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 Genting Berhad 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 Genting Berhad 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 Genting Berhad i.e., Genting Berhad and Dime Community go up and down completely randomly.

Pair Corralation between Genting Berhad and Dime Community

Assuming the 90 days horizon Genting Berhad is expected to generate 1.1 times more return on investment than Dime Community. However, Genting Berhad is 1.1 times more volatile than Dime Community Bancshares. It trades about 0.09 of its potential returns per unit of risk. Dime Community Bancshares is currently generating about -0.01 per unit of risk. If you would invest  68.00  in Genting Berhad on September 3, 2025 and sell it today you would earn a total of  9.00  from holding Genting Berhad or generate 13.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Genting Berhad  vs.  Dime Community Bancshares

 Performance 
       Timeline  
Genting Berhad 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Genting Berhad are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Genting Berhad reported solid returns over the last few months and may actually be approaching a breakup point.
Dime Community Bancshares 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Dime Community Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Dime Community is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Genting Berhad and Dime Community Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genting Berhad and Dime Community

The main advantage of trading using opposite Genting Berhad and Dime Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Berhad 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.
The idea behind Genting Berhad and Dime Community Bancshares pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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