Correlation Between Jindal Poly and Praxis Home
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By analyzing existing cross correlation between Jindal Poly Investment and Praxis Home Retail, you can compare the effects of market volatilities on Jindal Poly 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 Jindal Poly with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Poly and Praxis Home.
Diversification Opportunities for Jindal Poly and Praxis Home
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jindal and Praxis is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Poly Investment 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 Jindal Poly 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 Jindal Poly Investment 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 Jindal Poly i.e., Jindal Poly and Praxis Home go up and down completely randomly.
Pair Corralation between Jindal Poly and Praxis Home
Assuming the 90 days trading horizon Jindal Poly Investment is expected to under-perform the Praxis Home. But the stock apears to be less risky and, when comparing its historical volatility, Jindal Poly Investment is 1.09 times less risky than Praxis Home. The stock trades about -0.28 of its potential returns per unit of risk. The Praxis Home Retail is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,931 in Praxis Home Retail on October 29, 2024 and sell it today you would lose (101.00) from holding Praxis Home Retail or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jindal Poly Investment vs. Praxis Home Retail
Performance |
| Timeline |
| Jindal Poly Investment |
| Praxis Home Retail |
Jindal Poly and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindal Poly and Praxis Home
The main advantage of trading using opposite Jindal Poly and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Poly 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.| Jindal Poly vs. Khaitan Chemicals Fertilizers | Jindal Poly vs. Rajnandini Metal Limited | Jindal Poly vs. Manaksia Coated Metals | Jindal Poly vs. Southern Petrochemicals Industries |
| Praxis Home vs. Silver Touch Technologies | Praxis Home vs. Tamilnadu Telecommunication Limited | Praxis Home vs. Silly Monks Entertainment | Praxis Home vs. Som Distilleries Breweries |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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