Correlation Between Elin Electronics and Praxis Home
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By analyzing existing cross correlation between Elin Electronics Limited and Praxis Home Retail, you can compare the effects of market volatilities on Elin Electronics 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 Elin Electronics with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and Praxis Home.
Diversification Opportunities for Elin Electronics and Praxis Home
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elin and Praxis is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics 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 Elin Electronics 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 Elin Electronics 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 Elin Electronics i.e., Elin Electronics and Praxis Home go up and down completely randomly.
Pair Corralation between Elin Electronics and Praxis Home
Assuming the 90 days trading horizon Elin Electronics Limited is expected to generate 0.88 times more return on investment than Praxis Home. However, Elin Electronics Limited is 1.14 times less risky than Praxis Home. It trades about 0.06 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.02 per unit of risk. If you would invest 15,175 in Elin Electronics Limited on September 14, 2024 and sell it today you would earn a total of 6,484 from holding Elin Electronics Limited or generate 42.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elin Electronics Limited vs. Praxis Home Retail
Performance |
| Timeline |
| Elin Electronics |
| Praxis Home Retail |
Elin Electronics and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and Praxis Home
The main advantage of trading using opposite Elin Electronics and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics 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.| Elin Electronics vs. Reliance Industries Limited | Elin Electronics vs. Oil Natural Gas | Elin Electronics vs. ICICI Bank Limited | Elin Electronics vs. Bharti Airtel Limited |
| Praxis Home vs. Reliance Industries Limited | Praxis Home vs. Tata Consultancy Services | Praxis Home vs. HDFC Bank Limited | Praxis Home vs. Bharti Airtel 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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