Correlation Between Gujarat Raffia and Praxis Home
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By analyzing existing cross correlation between Gujarat Raffia Industries and Praxis Home Retail, you can compare the effects of market volatilities on Gujarat Raffia 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 Gujarat Raffia with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gujarat Raffia and Praxis Home.
Diversification Opportunities for Gujarat Raffia and Praxis Home
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gujarat and Praxis is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gujarat Raffia 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 Gujarat Raffia 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 Gujarat Raffia 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 Gujarat Raffia i.e., Gujarat Raffia and Praxis Home go up and down completely randomly.
Pair Corralation between Gujarat Raffia and Praxis Home
Assuming the 90 days trading horizon Gujarat Raffia Industries is expected to generate 1.14 times more return on investment than Praxis Home. However, Gujarat Raffia is 1.14 times more volatile than Praxis Home Retail. It trades about 0.03 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 7,903 in Gujarat Raffia Industries on October 20, 2024 and sell it today you would earn a total of 70.00 from holding Gujarat Raffia Industries or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gujarat Raffia Industries vs. Praxis Home Retail
Performance |
| Timeline |
| Gujarat Raffia Industries |
| Praxis Home Retail |
Gujarat Raffia and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gujarat Raffia and Praxis Home
The main advantage of trading using opposite Gujarat Raffia and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gujarat Raffia 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.| Gujarat Raffia vs. Digjam Limited | Gujarat Raffia vs. NMDC Limited | Gujarat Raffia vs. Manaksia Coated Metals | Gujarat Raffia vs. ITI Limited |
| Praxis Home vs. Jayant Agro Organics | Praxis Home vs. Fairchem Organics Limited | Praxis Home vs. Fine Organic Industries | Praxis Home vs. Sapphire Foods India |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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