Correlation Between JGCHEMICALS and Praxis Home
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Praxis Home Retail, you can compare the effects of market volatilities on JGCHEMICALS 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 JGCHEMICALS with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Praxis Home.
Diversification Opportunities for JGCHEMICALS and Praxis Home
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JGCHEMICALS and Praxis is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS 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 JGCHEMICALS 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 JGCHEMICALS 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 JGCHEMICALS i.e., JGCHEMICALS and Praxis Home go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Praxis Home
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.68 times more return on investment than Praxis Home. However, JGCHEMICALS is 1.68 times more volatile than Praxis Home Retail. It trades about 0.24 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.2 per unit of risk. If you would invest 34,305 in JGCHEMICALS LIMITED on September 1, 2024 and sell it today you would earn a total of 9,200 from holding JGCHEMICALS LIMITED or generate 26.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Praxis Home Retail
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Praxis Home Retail |
JGCHEMICALS and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Praxis Home
The main advantage of trading using opposite JGCHEMICALS and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS 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.| JGCHEMICALS vs. Privi Speciality Chemicals | JGCHEMICALS vs. Kamat Hotels Limited | JGCHEMICALS vs. TECIL Chemicals and | JGCHEMICALS vs. Juniper Hotels |
| Praxis Home vs. Reliance Industries Limited | Praxis Home vs. Tata Consultancy Services | Praxis Home vs. HDFC Bank Limited | Praxis Home vs. Kingfa Science Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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