Correlation Between Praj Industries and Shipping
Specify exactly 2 symbols:
By analyzing existing cross correlation between Praj Industries Limited and Shipping, you can compare the effects of market volatilities on Praj Industries and Shipping 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 Praj Industries with a short position of Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praj Industries and Shipping.
Diversification Opportunities for Praj Industries and Shipping
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Praj and Shipping is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Praj Industries Limited and Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shipping and Praj Industries 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 Praj Industries Limited are associated (or correlated) with Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shipping has no effect on the direction of Praj Industries i.e., Praj Industries and Shipping go up and down completely randomly.
Pair Corralation between Praj Industries and Shipping
Assuming the 90 days trading horizon Praj Industries is expected to generate 1.08 times less return on investment than Shipping. But when comparing it to its historical volatility, Praj Industries Limited is 1.42 times less risky than Shipping. It trades about 0.08 of its potential returns per unit of risk. Shipping is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 16,075 in Shipping on September 3, 2024 and sell it today you would earn a total of 7,412 from holding Shipping or generate 46.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praj Industries Limited vs. Shipping
Performance |
| Timeline |
| Praj Industries |
| Shipping |
Praj Industries and Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praj Industries and Shipping
The main advantage of trading using opposite Praj Industries and Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praj Industries position performs unexpectedly, Shipping 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 Shipping will offset losses from the drop in Shipping's long position.| Praj Industries vs. Tata Consultancy Services | Praj Industries vs. Reliance Industries Limited | Praj Industries vs. Wipro Limited | Praj Industries vs. Shipping |
| Shipping vs. Sintex Plastics Technology | Shipping vs. Shyam Metalics and | Shipping vs. Hilton Metal Forging | Shipping vs. Sonata Software Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |