Correlation Between Praxis Home and ASK AUTOMOTIVE
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By analyzing existing cross correlation between Praxis Home Retail and ASK AUTOMOTIVE LIMITED, you can compare the effects of market volatilities on Praxis Home and ASK AUTOMOTIVE 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 Praxis Home with a short position of ASK AUTOMOTIVE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and ASK AUTOMOTIVE.
Diversification Opportunities for Praxis Home and ASK AUTOMOTIVE
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Praxis and ASK is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and ASK AUTOMOTIVE LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASK AUTOMOTIVE and Praxis Home 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 Praxis Home Retail are associated (or correlated) with ASK AUTOMOTIVE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASK AUTOMOTIVE has no effect on the direction of Praxis Home i.e., Praxis Home and ASK AUTOMOTIVE go up and down completely randomly.
Pair Corralation between Praxis Home and ASK AUTOMOTIVE
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the ASK AUTOMOTIVE. In addition to that, Praxis Home is 1.46 times more volatile than ASK AUTOMOTIVE LIMITED. It trades about -0.32 of its total potential returns per unit of risk. ASK AUTOMOTIVE LIMITED is currently generating about 0.03 per unit of volatility. If you would invest 41,805 in ASK AUTOMOTIVE LIMITED on November 29, 2024 and sell it today you would earn a total of 400.00 from holding ASK AUTOMOTIVE LIMITED or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. ASK AUTOMOTIVE LIMITED
Performance |
| Timeline |
| Praxis Home Retail |
| ASK AUTOMOTIVE |
Praxis Home and ASK AUTOMOTIVE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and ASK AUTOMOTIVE
The main advantage of trading using opposite Praxis Home and ASK AUTOMOTIVE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, ASK AUTOMOTIVE 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 ASK AUTOMOTIVE will offset losses from the drop in ASK AUTOMOTIVE's long position.| Praxis Home vs. Vidhi Specialty Food | Praxis Home vs. Agro Tech Foods | Praxis Home vs. Hindustan Foods Limited | Praxis Home vs. Indraprastha Medical |
| ASK AUTOMOTIVE vs. Compucom Software Limited | ASK AUTOMOTIVE vs. Sonata Software Limited | ASK AUTOMOTIVE vs. LLOYDS METALS AND | ASK AUTOMOTIVE vs. Oriental Hotels 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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