Correlation Between Praxis Home and Elin Electronics
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By analyzing existing cross correlation between Praxis Home Retail and Elin Electronics Limited, you can compare the effects of market volatilities on Praxis Home and Elin Electronics 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 Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Elin Electronics.
Diversification Opportunities for Praxis Home and Elin Electronics
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Praxis and Elin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics 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 Elin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elin Electronics has no effect on the direction of Praxis Home i.e., Praxis Home and Elin Electronics go up and down completely randomly.
Pair Corralation between Praxis Home and Elin Electronics
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Elin Electronics. In addition to that, Praxis Home is 1.6 times more volatile than Elin Electronics Limited. It trades about -0.1 of its total potential returns per unit of risk. Elin Electronics Limited is currently generating about 0.12 per unit of volatility. If you would invest 20,755 in Elin Electronics Limited on September 14, 2024 and sell it today you would earn a total of 904.00 from holding Elin Electronics Limited or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Elin Electronics Limited
Performance |
| Timeline |
| Praxis Home Retail |
| Elin Electronics |
Praxis Home and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Elin Electronics
The main advantage of trading using opposite Praxis Home and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Elin Electronics 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 Elin Electronics will offset losses from the drop in Elin Electronics' long position.| Praxis Home vs. Reliance Industries Limited | Praxis Home vs. Tata Consultancy Services | Praxis Home vs. HDFC Bank Limited | Praxis Home vs. Bharti Airtel Limited |
| Elin Electronics vs. Reliance Industries Limited | Elin Electronics vs. Oil Natural Gas | Elin Electronics vs. ICICI Bank Limited | Elin Electronics vs. Bharti Airtel 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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