Correlation Between Hope Bancorp and Dime Community
Can any of the company-specific risk be diversified away by investing in both Hope 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 Hope 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 Hope Bancorp and Dime Community Bancshares, you can compare the effects of market volatilities on Hope 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 Hope Bancorp with a short position of Dime Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hope Bancorp and Dime Community.
Diversification Opportunities for Hope Bancorp and Dime Community
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hope and Dime is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hope 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 Hope 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 Hope 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 Hope Bancorp i.e., Hope Bancorp and Dime Community go up and down completely randomly.
Pair Corralation between Hope Bancorp and Dime Community
Given the investment horizon of 90 days Hope Bancorp is expected to generate 0.85 times more return on investment than Dime Community. However, Hope Bancorp is 1.18 times less risky than Dime Community. It trades about -0.02 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 1,029 in Hope Bancorp on August 21, 2025 and sell it today you would lose (38.00) from holding Hope Bancorp or give up 3.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hope Bancorp vs. Dime Community Bancshares
Performance |
| Timeline |
| Hope Bancorp |
| Dime Community Bancshares |
Hope Bancorp and Dime Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hope Bancorp and Dime Community
The main advantage of trading using opposite Hope Bancorp and Dime Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hope 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.| Hope Bancorp vs. National Bank Holdings | Hope Bancorp vs. TriCo Bancshares | Hope Bancorp vs. Live Oak Bancshares, | Hope Bancorp vs. ST Bancorp |
| Dime Community vs. Bank First National | Dime Community vs. ConnectOne Bancorp | Dime Community vs. Hope Bancorp | Dime Community vs. Washington Federal |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |