Correlation Between Praxis Home and Gujarat Lease
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By analyzing existing cross correlation between Praxis Home Retail and Gujarat Lease Financing, you can compare the effects of market volatilities on Praxis Home and Gujarat Lease 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 Gujarat Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Gujarat Lease.
Diversification Opportunities for Praxis Home and Gujarat Lease
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Praxis and Gujarat is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Gujarat Lease Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Lease Financing 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 Gujarat Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Lease Financing has no effect on the direction of Praxis Home i.e., Praxis Home and Gujarat Lease go up and down completely randomly.
Pair Corralation between Praxis Home and Gujarat Lease
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Gujarat Lease. In addition to that, Praxis Home is 1.16 times more volatile than Gujarat Lease Financing. It trades about 0.0 of its total potential returns per unit of risk. Gujarat Lease Financing is currently generating about 0.08 per unit of volatility. If you would invest 320.00 in Gujarat Lease Financing on August 31, 2024 and sell it today you would earn a total of 517.00 from holding Gujarat Lease Financing or generate 161.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Praxis Home Retail vs. Gujarat Lease Financing
Performance |
| Timeline |
| Praxis Home Retail |
| Gujarat Lease Financing |
Praxis Home and Gujarat Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Gujarat Lease
The main advantage of trading using opposite Praxis Home and Gujarat Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Gujarat Lease 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 Gujarat Lease will offset losses from the drop in Gujarat Lease's long position.| Praxis Home vs. Shyam Telecom Limited | Praxis Home vs. G Tec Jainx Education | Praxis Home vs. TVS Electronics Limited | Praxis Home vs. Tree House Education |
| Gujarat Lease vs. V Mart Retail Limited | Gujarat Lease vs. Praxis Home Retail | Gujarat Lease vs. Mangalam Drugs And | Gujarat Lease vs. Paramount Communications 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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