Correlation Between Praxis Home and Cambridge Technology
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By analyzing existing cross correlation between Praxis Home Retail and Cambridge Technology Enterprises, you can compare the effects of market volatilities on Praxis Home and Cambridge Technology 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 Cambridge Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Cambridge Technology.
Diversification Opportunities for Praxis Home and Cambridge Technology
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Praxis and Cambridge is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Cambridge Technology Enterpris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Technology 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 Cambridge Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Technology has no effect on the direction of Praxis Home i.e., Praxis Home and Cambridge Technology go up and down completely randomly.
Pair Corralation between Praxis Home and Cambridge Technology
Assuming the 90 days trading horizon Praxis Home Retail is expected to generate 1.44 times more return on investment than Cambridge Technology. However, Praxis Home is 1.44 times more volatile than Cambridge Technology Enterprises. It trades about -0.12 of its potential returns per unit of risk. Cambridge Technology Enterprises is currently generating about -0.25 per unit of risk. If you would invest 2,655 in Praxis Home Retail on August 29, 2024 and sell it today you would lose (389.00) from holding Praxis Home Retail or give up 14.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Cambridge Technology Enterpris
Performance |
| Timeline |
| Praxis Home Retail |
| Cambridge Technology |
Praxis Home and Cambridge Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Cambridge Technology
The main advantage of trading using opposite Praxis Home and Cambridge Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Cambridge Technology 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 Cambridge Technology will offset losses from the drop in Cambridge Technology's long position.| Praxis Home vs. Hemisphere Properties India | Praxis Home vs. India Glycols Limited | Praxis Home vs. Indo Borax Chemicals | Praxis Home vs. Kingfa Science Technology |
| Cambridge Technology vs. Reliance Industries Limited | Cambridge Technology vs. Life Insurance | Cambridge Technology vs. India Glycols Limited | Cambridge Technology vs. Indo Borax Chemicals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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