Correlation Between Embassy Office and Praxis Home
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By analyzing existing cross correlation between Embassy Office Parks and Praxis Home Retail, you can compare the effects of market volatilities on Embassy Office 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 Embassy Office with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embassy Office and Praxis Home.
Diversification Opportunities for Embassy Office and Praxis Home
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Embassy and Praxis is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Office Parks 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 Embassy Office 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 Embassy Office Parks 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 Embassy Office i.e., Embassy Office and Praxis Home go up and down completely randomly.
Pair Corralation between Embassy Office and Praxis Home
Assuming the 90 days trading horizon Embassy Office Parks is expected to generate 0.54 times more return on investment than Praxis Home. However, Embassy Office Parks is 1.87 times less risky than Praxis Home. It trades about -0.03 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.14 per unit of risk. If you would invest 37,040 in Embassy Office Parks on October 26, 2024 and sell it today you would lose (816.00) from holding Embassy Office Parks or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embassy Office Parks vs. Praxis Home Retail
Performance |
| Timeline |
| Embassy Office Parks |
| Praxis Home Retail |
Embassy Office and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embassy Office and Praxis Home
The main advantage of trading using opposite Embassy Office and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embassy Office 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.| Embassy Office vs. Reliance Industries Limited | Embassy Office vs. Life Insurance | Embassy Office vs. Indian Oil | Embassy Office vs. Oil Natural Gas |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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