Correlation Between LT Technology and Praxis Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between LT Technology Services and Praxis Home Retail, you can compare the effects of market volatilities on LT Technology 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 LT Technology with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Technology and Praxis Home.
Diversification Opportunities for LT Technology and Praxis Home
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LTTS and Praxis is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding LT Technology Services 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 LT Technology 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 LT Technology Services 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 LT Technology i.e., LT Technology and Praxis Home go up and down completely randomly.
Pair Corralation between LT Technology and Praxis Home
Assuming the 90 days trading horizon LT Technology Services is expected to generate 0.65 times more return on investment than Praxis Home. However, LT Technology Services is 1.54 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 -0.09 per unit of risk. If you would invest 515,630 in LT Technology Services on August 31, 2024 and sell it today you would earn a total of 9,335 from holding LT Technology Services or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
LT Technology Services vs. Praxis Home Retail
Performance |
| Timeline |
| LT Technology Services |
| Praxis Home Retail |
LT Technology and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Technology and Praxis Home
The main advantage of trading using opposite LT Technology and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT Technology 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.| LT Technology vs. Tata Consultancy Services | LT Technology vs. Reliance Industries Limited | LT Technology vs. SIS LIMITED | LT Technology vs. State Bank of |
| Praxis Home vs. Shyam Telecom Limited | Praxis Home vs. G Tec Jainx Education | Praxis Home vs. TVS Electronics Limited | Praxis Home vs. Tree House Education |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |