Correlation Between Asian Hotels and Praxis Home
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By analyzing existing cross correlation between Asian Hotels Limited and Praxis Home Retail, you can compare the effects of market volatilities on Asian Hotels and Praxis Home 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 Asian Hotels with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Praxis Home.
Diversification Opportunities for Asian Hotels and Praxis Home
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asian and Praxis is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited and Praxis Home Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxis Home Retail and Asian Hotels 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 Asian Hotels Limited are associated (or correlated) with Praxis Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxis Home Retail has no effect on the direction of Asian Hotels i.e., Asian Hotels and Praxis Home go up and down completely randomly.
Pair Corralation between Asian Hotels and Praxis Home
Assuming the 90 days trading horizon Asian Hotels Limited is expected to generate 1.31 times more return on investment than Praxis Home. However, Asian Hotels is 1.31 times more volatile than Praxis Home Retail. It trades about 0.07 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.21 per unit of risk. If you would invest 32,865 in Asian Hotels Limited on November 2, 2024 and sell it today you would earn a total of 1,365 from holding Asian Hotels Limited or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Hotels Limited vs. Praxis Home Retail
Performance |
| Timeline |
| Asian Hotels Limited |
| Praxis Home Retail |
Asian Hotels and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Praxis Home
The main advantage of trading using opposite Asian Hotels and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Praxis Home 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 Praxis Home will offset losses from the drop in Praxis Home's long position.| Asian Hotels vs. Navneet Education Limited | Asian Hotels vs. Mtar Technologies Limited | Asian Hotels vs. AVALON TECHNOLOGIES LTD | Asian Hotels vs. PNC Infratech Limited |
| Praxis Home vs. LT Technology Services | Praxis Home vs. Sasken Technologies Limited | Praxis Home vs. Newgen Software Technologies | Praxis Home vs. Taj GVK Hotels |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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