Correlation Between CITIGROUP and Parker Hannifin
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By analyzing existing cross correlation between CITIGROUP INC 6 and Parker Hannifin, you can compare the effects of market volatilities on CITIGROUP and Parker Hannifin 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 CITIGROUP with a short position of Parker Hannifin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP and Parker Hannifin.
Diversification Opportunities for CITIGROUP and Parker Hannifin
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITIGROUP and Parker is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP INC 6 and Parker Hannifin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parker Hannifin and CITIGROUP 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 CITIGROUP INC 6 are associated (or correlated) with Parker Hannifin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parker Hannifin has no effect on the direction of CITIGROUP i.e., CITIGROUP and Parker Hannifin go up and down completely randomly.
Pair Corralation between CITIGROUP and Parker Hannifin
Assuming the 90 days trading horizon CITIGROUP INC 6 is expected to under-perform the Parker Hannifin. But the bond apears to be less risky and, when comparing its historical volatility, CITIGROUP INC 6 is 1.71 times less risky than Parker Hannifin. The bond trades about -0.03 of its potential returns per unit of risk. The Parker Hannifin is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 63,257 in Parker Hannifin on September 1, 2024 and sell it today you would earn a total of 7,033 from holding Parker Hannifin or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIGROUP INC 6 vs. Parker Hannifin
Performance |
| Timeline |
| CITIGROUP INC 6 |
| Parker Hannifin |
CITIGROUP and Parker Hannifin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIGROUP and Parker Hannifin
The main advantage of trading using opposite CITIGROUP and Parker Hannifin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP position performs unexpectedly, Parker Hannifin 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 Parker Hannifin will offset losses from the drop in Parker Hannifin's long position.| CITIGROUP vs. Parker Hannifin | CITIGROUP vs. Westinghouse Air Brake | CITIGROUP vs. RBC Bearings Incorporated | CITIGROUP vs. Park Ohio Holdings |
| Parker Hannifin vs. Flowserve | Parker Hannifin vs. Franklin Electric Co | Parker Hannifin vs. Dover | Parker Hannifin vs. Crane Company |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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