Correlation Between AVALON TECHNOLOGIES and Praxis Home
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By analyzing existing cross correlation between AVALON TECHNOLOGIES LTD and Praxis Home Retail, you can compare the effects of market volatilities on AVALON TECHNOLOGIES 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 AVALON TECHNOLOGIES with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVALON TECHNOLOGIES and Praxis Home.
Diversification Opportunities for AVALON TECHNOLOGIES and Praxis Home
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVALON and Praxis is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding AVALON TECHNOLOGIES LTD 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 AVALON TECHNOLOGIES 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 AVALON TECHNOLOGIES LTD 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 AVALON TECHNOLOGIES i.e., AVALON TECHNOLOGIES and Praxis Home go up and down completely randomly.
Pair Corralation between AVALON TECHNOLOGIES and Praxis Home
Assuming the 90 days trading horizon AVALON TECHNOLOGIES LTD is expected to generate 1.47 times more return on investment than Praxis Home. However, AVALON TECHNOLOGIES is 1.47 times more volatile than Praxis Home Retail. It trades about 0.42 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.11 per unit of risk. If you would invest 57,350 in AVALON TECHNOLOGIES LTD on August 28, 2024 and sell it today you would earn a total of 29,825 from holding AVALON TECHNOLOGIES LTD or generate 52.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVALON TECHNOLOGIES LTD vs. Praxis Home Retail
Performance |
| Timeline |
| AVALON TECHNOLOGIES LTD |
| Praxis Home Retail |
AVALON TECHNOLOGIES and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVALON TECHNOLOGIES and Praxis Home
The main advantage of trading using opposite AVALON TECHNOLOGIES and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVALON TECHNOLOGIES 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.| AVALON TECHNOLOGIES vs. MIC Electronics Limited | AVALON TECHNOLOGIES vs. Mtar Technologies Limited | AVALON TECHNOLOGIES vs. Speciality Restaurants Limited | AVALON TECHNOLOGIES vs. PB Fintech Limited |
| Praxis Home vs. Kaushalya Infrastructure Development | Praxis Home vs. MMTC Limited | Praxis Home vs. Kingfa Science Technology | Praxis Home vs. Rico Auto Industries |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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