Correlation Between MAS Financial and Praxis Home
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By analyzing existing cross correlation between MAS Financial Services and Praxis Home Retail, you can compare the effects of market volatilities on MAS Financial 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 MAS Financial with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Financial and Praxis Home.
Diversification Opportunities for MAS Financial and Praxis Home
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MAS and Praxis is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding MAS Financial 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 MAS Financial 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 MAS Financial 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 MAS Financial i.e., MAS Financial and Praxis Home go up and down completely randomly.
Pair Corralation between MAS Financial and Praxis Home
Assuming the 90 days trading horizon MAS Financial Services is expected to generate 2.84 times more return on investment than Praxis Home. However, MAS Financial is 2.84 times more volatile than Praxis Home Retail. It trades about 0.03 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 27,063 in MAS Financial Services on August 25, 2024 and sell it today you would earn a total of 837.00 from holding MAS Financial Services or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MAS Financial Services vs. Praxis Home Retail
Performance |
| Timeline |
| MAS Financial Services |
| Praxis Home Retail |
MAS Financial and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAS Financial and Praxis Home
The main advantage of trading using opposite MAS Financial and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Financial 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.| MAS Financial vs. Mangalore Chemicals Fertilizers | MAS Financial vs. Baazar Style Retail | MAS Financial vs. Dev Information Technology | MAS Financial vs. Alkyl Amines Chemicals |
| Praxis Home vs. Kaushalya Infrastructure Development | Praxis Home vs. MMTC Limited | Praxis Home vs. Kingfa Science Technology | Praxis Home vs. Rico Auto Industries |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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