Correlation Between Praxis Home and GTL
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By analyzing existing cross correlation between Praxis Home Retail and GTL Limited, you can compare the effects of market volatilities on Praxis Home and GTL 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 GTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and GTL.
Diversification Opportunities for Praxis Home and GTL
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Praxis and GTL is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and GTL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTL 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 GTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTL Limited has no effect on the direction of Praxis Home i.e., Praxis Home and GTL go up and down completely randomly.
Pair Corralation between Praxis Home and GTL
Assuming the 90 days trading horizon Praxis Home is expected to generate 1.27 times less return on investment than GTL. But when comparing it to its historical volatility, Praxis Home Retail is 1.36 times less risky than GTL. It trades about 0.07 of its potential returns per unit of risk. GTL Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 985.00 in GTL Limited on September 3, 2024 and sell it today you would earn a total of 302.00 from holding GTL Limited or generate 30.66% 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. GTL Limited
Performance |
| Timeline |
| Praxis Home Retail |
| GTL Limited |
Praxis Home and GTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and GTL
The main advantage of trading using opposite Praxis Home and GTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, GTL 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 GTL will offset losses from the drop in GTL's long position.| Praxis Home vs. Bajaj Holdings Investment | Praxis Home vs. Shipping | Praxis Home vs. Indo Borax Chemicals | Praxis Home vs. Kingfa Science Technology |
| GTL vs. EMBASSY OFFICE PARKS | GTL vs. Sonata Software Limited | GTL vs. Bharat Road Network | GTL vs. Syrma SGS 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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