Correlation Between Lemon Tree and Praxis Home
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By analyzing existing cross correlation between Lemon Tree Hotels and Praxis Home Retail, you can compare the effects of market volatilities on Lemon Tree 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 Lemon Tree with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and Praxis Home.
Diversification Opportunities for Lemon Tree and Praxis Home
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lemon and Praxis is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels 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 Lemon Tree 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 Lemon Tree Hotels 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 Lemon Tree i.e., Lemon Tree and Praxis Home go up and down completely randomly.
Pair Corralation between Lemon Tree and Praxis Home
Assuming the 90 days trading horizon Lemon Tree Hotels is expected to under-perform the Praxis Home. But the stock apears to be less risky and, when comparing its historical volatility, Lemon Tree Hotels is 1.28 times less risky than Praxis Home. The stock trades about -0.01 of its potential returns per unit of risk. The Praxis Home Retail is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,695 in Praxis Home Retail on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Praxis Home Retail or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemon Tree Hotels vs. Praxis Home Retail
Performance |
| Timeline |
| Lemon Tree Hotels |
| Praxis Home Retail |
Lemon Tree and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and Praxis Home
The main advantage of trading using opposite Lemon Tree and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree 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.| Lemon Tree vs. JGCHEMICALS LIMITED | Lemon Tree vs. Chembond Chemicals | Lemon Tree vs. Khaitan Chemicals Fertilizers | Lemon Tree vs. Bigbloc Construction Limited |
| Praxis Home vs. AUTHUM INVESTMENT INFRASTRUCTU | Praxis Home vs. SIL Investments Limited | Praxis Home vs. Silver Touch Technologies | Praxis Home vs. Pilani Investment and |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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