Correlation Between Pentair PLC and CITIGROUP
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By analyzing existing cross correlation between Pentair PLC and CITIGROUP INC 37, you can compare the effects of market volatilities on Pentair PLC 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 Pentair PLC with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pentair PLC and CITIGROUP.
Diversification Opportunities for Pentair PLC and CITIGROUP
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pentair and CITIGROUP is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Pentair PLC and CITIGROUP INC 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 37 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 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 37 has no effect on the direction of Pentair PLC i.e., Pentair PLC and CITIGROUP go up and down completely randomly.
Pair Corralation between Pentair PLC and CITIGROUP
Considering the 90-day investment horizon Pentair PLC is expected to generate 3.21 times more return on investment than CITIGROUP. However, Pentair PLC is 3.21 times more volatile than CITIGROUP INC 37. It trades about 0.43 of its potential returns per unit of risk. CITIGROUP INC 37 is currently generating about -0.21 per unit of risk. If you would invest 9,965 in Pentair PLC on September 3, 2024 and sell it today you would earn a total of 934.00 from holding Pentair PLC or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pentair PLC vs. CITIGROUP INC 37
Performance |
| Timeline |
| Pentair PLC |
| CITIGROUP INC 37 |
Pentair PLC and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pentair PLC and CITIGROUP
The main advantage of trading using opposite Pentair PLC and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pentair PLC 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.| Pentair PLC vs. Illinois Tool Works | Pentair PLC vs. Parker Hannifin | Pentair PLC vs. Emerson Electric | Pentair PLC vs. Smith AO |
| CITIGROUP vs. Pentair PLC | CITIGROUP vs. Grupo Aeroportuario del | CITIGROUP vs. Barrick Gold Corp | CITIGROUP vs. Western Acquisition Ventures |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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