Correlation Between Praxis Home and BF Investment
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By analyzing existing cross correlation between Praxis Home Retail and BF Investment Limited, you can compare the effects of market volatilities on Praxis Home and BF Investment 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 BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and BF Investment.
Diversification Opportunities for Praxis Home and BF Investment
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Praxis and BFINVEST is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and BF Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Investment Limited 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 BF Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Investment Limited has no effect on the direction of Praxis Home i.e., Praxis Home and BF Investment go up and down completely randomly.
Pair Corralation between Praxis Home and BF Investment
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the BF Investment. In addition to that, Praxis Home is 2.11 times more volatile than BF Investment Limited. It trades about -0.2 of its total potential returns per unit of risk. BF Investment Limited is currently generating about -0.07 per unit of volatility. If you would invest 75,940 in BF Investment Limited on September 12, 2024 and sell it today you would lose (1,985) from holding BF Investment Limited or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. BF Investment Limited
Performance |
| Timeline |
| Praxis Home Retail |
| BF Investment Limited |
Praxis Home and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and BF Investment
The main advantage of trading using opposite Praxis Home and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, BF Investment 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 BF Investment will offset losses from the drop in BF Investment's long position.| Praxis Home vs. Hemisphere Properties India | Praxis Home vs. Indo Borax Chemicals | Praxis Home vs. Kingfa Science Technology | Praxis Home vs. Alkali Metals Limited |
| BF Investment vs. Yes Bank Limited | BF Investment vs. Indian Oil | BF Investment vs. Indo Borax Chemicals | BF Investment vs. Kingfa Science Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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