Correlation Between Parker Hannifin and CITIGROUP
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By analyzing existing cross correlation between Parker Hannifin and CITIGROUP INC 6, you can compare the effects of market volatilities on Parker Hannifin and CITIGROUP 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 Parker Hannifin with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parker Hannifin and CITIGROUP.
Diversification Opportunities for Parker Hannifin and CITIGROUP
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Parker and CITIGROUP is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Parker Hannifin and CITIGROUP INC 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6 and Parker Hannifin 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 Parker Hannifin are associated (or correlated) with CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 6 has no effect on the direction of Parker Hannifin i.e., Parker Hannifin and CITIGROUP go up and down completely randomly.
Pair Corralation between Parker Hannifin and CITIGROUP
Allowing for the 90-day total investment horizon Parker Hannifin is expected to generate 1.54 times more return on investment than CITIGROUP. However, Parker Hannifin is 1.54 times more volatile than CITIGROUP INC 6. It trades about 0.11 of its potential returns per unit of risk. CITIGROUP INC 6 is currently generating about 0.0 per unit of risk. If you would invest 29,046 in Parker Hannifin on September 3, 2024 and sell it today you would earn a total of 41,244 from holding Parker Hannifin or generate 142.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Parker Hannifin vs. CITIGROUP INC 6
Performance |
| Timeline |
| Parker Hannifin |
| CITIGROUP INC 6 |
Parker Hannifin and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parker Hannifin and CITIGROUP
The main advantage of trading using opposite Parker Hannifin and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parker Hannifin position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Parker Hannifin vs. Illinois Tool Works | Parker Hannifin vs. Pentair PLC | Parker Hannifin vs. Emerson Electric | Parker Hannifin vs. Smith AO |
| CITIGROUP vs. Nike Inc | CITIGROUP vs. Semtech | CITIGROUP vs. Timken Company | CITIGROUP vs. World Houseware Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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