Correlation Between COSMO FIRST and Praxis Home
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By analyzing existing cross correlation between COSMO FIRST LIMITED and Praxis Home Retail, you can compare the effects of market volatilities on COSMO FIRST 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 COSMO FIRST with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and Praxis Home.
Diversification Opportunities for COSMO FIRST and Praxis Home
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COSMO and Praxis is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST 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 COSMO FIRST 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 COSMO FIRST 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 COSMO FIRST i.e., COSMO FIRST and Praxis Home go up and down completely randomly.
Pair Corralation between COSMO FIRST and Praxis Home
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 1.21 times more return on investment than Praxis Home. However, COSMO FIRST is 1.21 times more volatile than Praxis Home Retail. It trades about 0.06 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.13 per unit of risk. If you would invest 74,610 in COSMO FIRST LIMITED on October 26, 2024 and sell it today you would earn a total of 6,715 from holding COSMO FIRST LIMITED or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. Praxis Home Retail
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| Praxis Home Retail |
COSMO FIRST and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and Praxis Home
The main advantage of trading using opposite COSMO FIRST and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST 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.| COSMO FIRST vs. One 97 Communications | COSMO FIRST vs. Tamilnadu Telecommunication Limited | COSMO FIRST vs. Agro Tech Foods | COSMO FIRST vs. Imagicaaworld Entertainment Limited |
| Praxis Home vs. Kingfa Science Technology | Praxis Home vs. Rico Auto Industries | Praxis Home vs. GACM Technologies Limited | Praxis Home vs. COSMO FIRST LIMITED |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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