Correlation Between Pentair PLC and BPCEGP
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By analyzing existing cross correlation between Pentair PLC and BPCEGP 2277 20 JAN 32, you can compare the effects of market volatilities on Pentair PLC and BPCEGP 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 Pentair PLC with a short position of BPCEGP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pentair PLC and BPCEGP.
Diversification Opportunities for Pentair PLC and BPCEGP
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pentair and BPCEGP is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pentair PLC and BPCEGP 2277 20 JAN 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPCEGP 2277 20 and Pentair PLC 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 Pentair PLC are associated (or correlated) with BPCEGP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPCEGP 2277 20 has no effect on the direction of Pentair PLC i.e., Pentair PLC and BPCEGP go up and down completely randomly.
Pair Corralation between Pentair PLC and BPCEGP
Considering the 90-day investment horizon Pentair PLC is expected to generate 0.62 times more return on investment than BPCEGP. However, Pentair PLC is 1.6 times less risky than BPCEGP. It trades about 0.21 of its potential returns per unit of risk. BPCEGP 2277 20 JAN 32 is currently generating about -0.23 per unit of risk. If you would invest 10,408 in Pentair PLC on September 13, 2024 and sell it today you would earn a total of 402.50 from holding Pentair PLC or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Pentair PLC vs. BPCEGP 2277 20 JAN 32
Performance |
| Timeline |
| Pentair PLC |
| BPCEGP 2277 20 |
Pentair PLC and BPCEGP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pentair PLC and BPCEGP
The main advantage of trading using opposite Pentair PLC and BPCEGP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pentair PLC position performs unexpectedly, BPCEGP 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 BPCEGP will offset losses from the drop in BPCEGP's long position.| Pentair PLC vs. Hurco Companies | Pentair PLC vs. Enerpac Tool Group | Pentair PLC vs. China Yuchai International | Pentair PLC vs. Luxfer Holdings PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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