Correlation Between Next Mediaworks and Praxis Home
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By analyzing existing cross correlation between Next Mediaworks Limited and Praxis Home Retail, you can compare the effects of market volatilities on Next Mediaworks 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 Next Mediaworks with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and Praxis Home.
Diversification Opportunities for Next Mediaworks and Praxis Home
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Next and Praxis is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks 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 Next Mediaworks 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 Next Mediaworks 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 Next Mediaworks i.e., Next Mediaworks and Praxis Home go up and down completely randomly.
Pair Corralation between Next Mediaworks and Praxis Home
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to generate 1.26 times more return on investment than Praxis Home. However, Next Mediaworks is 1.26 times more volatile than Praxis Home Retail. It trades about -0.2 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.75 per unit of risk. If you would invest 797.00 in Next Mediaworks Limited on November 8, 2024 and sell it today you would lose (75.00) from holding Next Mediaworks Limited or give up 9.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Next Mediaworks Limited vs. Praxis Home Retail
Performance |
| Timeline |
| Next Mediaworks |
| Praxis Home Retail |
Next Mediaworks and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and Praxis Home
The main advantage of trading using opposite Next Mediaworks and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks 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.| Next Mediaworks vs. Aarey Drugs Pharmaceuticals | Next Mediaworks vs. Shivalik Bimetal Controls | Next Mediaworks vs. Ratnamani Metals Tubes | Next Mediaworks vs. Tata Communications Limited |
| Praxis Home vs. Allied Blenders Distillers | Praxis Home vs. LT Foods Limited | Praxis Home vs. The Indian Hotels | Praxis Home vs. Juniper Hotels |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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