Correlation Between Fine Organic and Praxis Home
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By analyzing existing cross correlation between Fine Organic Industries and Praxis Home Retail, you can compare the effects of market volatilities on Fine Organic 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 Fine Organic with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Organic and Praxis Home.
Diversification Opportunities for Fine Organic and Praxis Home
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fine and Praxis is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fine Organic Industries 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 Fine Organic 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 Fine Organic Industries 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 Fine Organic i.e., Fine Organic and Praxis Home go up and down completely randomly.
Pair Corralation between Fine Organic and Praxis Home
Assuming the 90 days trading horizon Fine Organic Industries is expected to under-perform the Praxis Home. But the stock apears to be less risky and, when comparing its historical volatility, Fine Organic Industries is 1.41 times less risky than Praxis Home. The stock trades about -0.08 of its potential returns per unit of risk. The Praxis Home Retail is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,622 in Praxis Home Retail on November 2, 2024 and sell it today you would earn a total of 90.00 from holding Praxis Home Retail or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Organic Industries vs. Praxis Home Retail
Performance |
| Timeline |
| Fine Organic Industries |
| Praxis Home Retail |
Fine Organic and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Organic and Praxis Home
The main advantage of trading using opposite Fine Organic and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Organic 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.| Fine Organic vs. Hexa Tradex Limited | Fine Organic vs. V2 Retail Limited | Fine Organic vs. UTI Asset Management | Fine Organic vs. Dev Information Technology |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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