Correlation Between Home First and Praxis Home
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By analyzing existing cross correlation between Home First Finance and Praxis Home Retail, you can compare the effects of market volatilities on Home 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 Home First with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home First and Praxis Home.
Diversification Opportunities for Home First and Praxis Home
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Home and Praxis is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Home First Finance 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 Home 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 Home First Finance 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 Home First i.e., Home First and Praxis Home go up and down completely randomly.
Pair Corralation between Home First and Praxis Home
Assuming the 90 days trading horizon Home First Finance is expected to generate 0.66 times more return on investment than Praxis Home. However, Home First Finance is 1.52 times less risky than Praxis Home. It trades about 0.05 of its potential returns per unit of risk. Praxis Home Retail is currently generating about 0.0 per unit of risk. If you would invest 70,036 in Home First Finance on September 14, 2024 and sell it today you would earn a total of 33,974 from holding Home First Finance or generate 48.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home First Finance vs. Praxis Home Retail
Performance |
| Timeline |
| Home First Finance |
| Praxis Home Retail |
Home First and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home First and Praxis Home
The main advantage of trading using opposite Home First and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home 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.| Home First vs. Sarthak Metals Limited | Home First vs. Manaksia Coated Metals | Home First vs. Hindustan Media Ventures | Home First vs. Indian Metals Ferro |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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