Correlation Between Trio Tech and Dime Community

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

Diversification Opportunities for Trio Tech and Dime Community

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Trio and Dime is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Trio Tech International 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 Trio Tech 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 Trio Tech International 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 Trio Tech i.e., Trio Tech and Dime Community go up and down completely randomly.

Pair Corralation between Trio Tech and Dime Community

Considering the 90-day investment horizon Trio Tech International is expected to generate 1.73 times more return on investment than Dime Community. However, Trio Tech is 1.73 times more volatile than Dime Community Bancshares. It trades about 0.19 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  550.00  in Trio Tech International on September 4, 2025 and sell it today you would earn a total of  290.00  from holding Trio Tech International or generate 52.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Trio Tech International  vs.  Dime Community Bancshares

 Performance 
       Timeline  
Trio Tech International 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Trio Tech International are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Trio Tech unveiled 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.

Trio Tech and Dime Community Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Trio Tech and Dime Community

The main advantage of trading using opposite Trio Tech and Dime Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trio Tech 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 Trio Tech International 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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